The U.S. government collects and compiles economic data through the Bureau of Labor Statistics, or BLS. Once the data is organized, it is used by the Bureau of Economic Analysis, or BEA, which is part of the Department of Commerce, to estimate the GDP and the national income.
What does the BEA do?
The Bureau of Economic Analysis (BEA) is an agency within the Department of Commerce's Economic and Statistics Administration, responsible for collecting and publishing economic data, research and analysis, and estimation methodologies.
The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports). It transforms the money-value measure, nominal GDP, into an index for quantity of total output.
Consumption is the largest component of the GDP. In the U.S., the largest and most stable component of consumption is services. Consumption is calculated by adding durable and non-durable goods and services expenditures. It is unaffected by the estimated value of imported goods.
Gross Domestic Product (GDP) measures the total value of final goods and services produced within a given country's borders. It is the most popular method of measuring an economy's output and is therefore considered a measure of the size of an economy.
Real gross domestic product (GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices, and is often referred to as "constant-price," "inflation-corrected" GDP or "constant dollar GDP."
Definition. The study of forces that determine the distribution of scarce resources. Economic analysis provides insight into how markets operate, and offers methods for attempting to predict future market behavior in response to events, trends, and cycles.
Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time. Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons.
Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.
The main difference between nominal and real values is that real values are adjusted for inflation, while nominal values are not. As a result, nominal GDP will often appear higher than real GDP. Values for real GDP are adjusted for differences in prices levels, while figures for nominal GDP are not.
The Data Collection Process. The Central Statistics Office (CSO), under the Ministry of Statistics and Program Implementation, is responsible for macroeconomic data gathering and statistical record keeping.
Measuring inflation is a difficult problem for government statisticians. Consumer Price Index (CPI) - A measure of price changes in consumer goods and services such as gasoline, food, clothing and automobiles. The CPI measures price change from the perspective of the purchaser.
Chained dollars is a method of adjusting real dollar amounts for inflation over time, so as to allow comparison of figures from different years. The U.S. Department of Commerce introduced the chained-dollar measure in 1996. Chained dollars generally reflect dollar figures computed with 2009 as the base year.
GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Nominal differs from real GDP in that it includes changes in prices due to inflation or a rise in the overall price level. Also known as "current dollar GDP" or "chained dollar GDP."
Definition of national economy. : the economy of a nation; specifically : the economy of a nation as a whole that is an economic unit and is usually held to have a unique existence greater than the sum of the individual units within it.
Capital deepening is a situation where the capital per worker is increasing in the economy. This is also referred to as increase in the capital intensity. Capital deepening is often measured by the rate of change in capital stock per labour hour.
The GDP per Capita in the United States is equivalent to 413 percent of the world's average. GDP per capita in the United States averaged 34922.23 USD from 1960 until 2016, reaching an all time high of 52194.90 USD in 2016 and a record low of 17036.90 USD in 1960.
Macroeconomics is a branch of the economics that studies how the aggregate economy behaves. In macroeconomics, a variety of economy-wide phenomena is thoroughly examined such as inflation, price levels, rate of growth, national income, gross domestic product (GDP) and changes in unemployment.
National Income and Product Accounts. The national income and product accounts (NIPA) are part of the national accounts of the United States. They are produced by the Bureau of Economic Analysis of the Department of Commerce.
Economic data or economic statistics are data (quantitative measures) describing an actual economy, past or present. A collection of such data in table form comprises a data set. Methodological economic and statistical elements of the subject include measurement, collection, analysis, and publication of data.
It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living; the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.