Four Components Of The Gross Domestic Product (GDP)

This paper will discuss the Gross Domestic Product (GDP), meaning the total market value of the country’s output (Case, 2017). I will explain the Expenditure approach and the four components used to calculate the GDP. I will also go over what is not included in the calculation and how inflation and unemployment relate to the growth of the GDP. In addition we will look at how the GDP reflects the economic welfare of our society and finally changes I would make and how they reflect a Christian world view.

First let’s look at the components of the Expenditure approach. By calculating the GDP as the sum of four categories of expenditures on output. The four categories used to make a formula to calculate they are; Personal Consumption Expenditures

My reasoning is the biblical world view that God placed humans on earth to be rulers of all things and utilize our resources in a resourceful way. He also asked us to help others as much as possible, “Sell your possessions, and give to the needy. Provide yourselves with moneybags that do not grow old, with a treasure in the heavens that does not fail, where no thief approaches and no moth destroys. For where your treasure is, there will your heart be also” (Luke 12:33-34). More and more people are donating or selling items they no longer need so that it may not be wasted. In addition many are buying from gently used stores and websites. I shop for used products often as do my friends, coworkers, and family. I believe we are not capturing a huge market in today’s economy God does not want us to be wasteful as doing so can harm the earth and be a loss for another who may need it. In John God said, And when they had eaten their fill, he told his disciples, “Gather up the leftover fragments, that nothing may be lost” (John 6:12). I hope that this paper gave you a better understand of the GDP and different factors that come in to