Purchase Solution

How the Congressional Budget Office DOESN'T Calculate GDP

Not what you're looking for?

Ask Custom Question

Does the Congressional Budget Office calculate GDP by simply adding up the sales of all business firms in one year, in other words, do they add up all the transactions in an economy? Explain and justify your answer. Please provide examples to support your claim.

Purchase this Solution
Solution Summary

Explanation, with examples, of why simply adding up all the transactions in an economy would give an incorrect value for GDP.

Solution Preview

No. The above method would be too simplistic and would lead to errors.

- GDP measures production, not sales. If a car was produced last year but sold ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Budget surplus forecast

    169034 In 1999, the Congressional Budget Office (CBO) projected forecasts of the budget surplus to be somewhere between 2 and 3 percent of GDP in the next ten years.

  • Congressional Budget Office

    94023 Congressional Budget Office In 1999, the Congressional Budget Office projected forecasts of the budget surplus to be somewhere between 2 and 3 percent of GDP in the next ten years.

  • Roles of CBO, OMB & CEA

    According to the websites of Congressional Budget Office (CBO), the Office of Management and Budget (OMB) and the Council of Economic Advisors (CEA) individually what are the following answers for each organization? 1) What do they do?

  • real GDP projections from the Congressional Budget Office

    Please find attached a sheet describing real GDP projections from the Congressional Budget Office (CBO), the administration, and the World Bank.

  • Political Agenda's Impact on the Federal Budget

    In the 2012 Budget, the Congressional Budget Office (CBO) predicted that the revenues would increase by almost $800 billion between 2012 and 2014 and 16.3% in 2012 to 20% in 2014.

  • expansionary acts

    The government should support the expansionary policies because: any attempt to reduce budget deficit will not increase the GDP.

  • Access and analyze the Budget of the United States

    Monitoring the Budget Once the President and the Congress approves the budget, Government monitors spnding through: • Agency program managers and budget officials, including the Inspector General, or IGs • The Office of Management and Budget • Congressional

  • Durango Manufacturing Company

    Based on these findings, determine how improving this internal control failure can mitigate future risks. Please show your references. According to the Congressional Budget Office, the economic growth will remain slow this year.

  • personal income tax and social security tax

    268535 Fiscal Policy: Government spending, taxes, budget processes, public debt The Congressional Budget Office (CBO) prepares reports for congress.

View More Related Solutions