The Gross National Product (GNP) measures the economic
performance of the whole economy. This indicator consists, at macro scale, of
the sum of consumption spending, investment spending, government spending, and
net trade. The gross national product refers to the sum of all goods and
services produced by United States residents, either in the United States or
abroad.
The Gross Domestic Product (GDP) refers to the sum of all
goods and services produced in the United States, either by domestic or foreign
companies. The differences are nominal in the case of the economy of the United
States. GDP figures are more popular outside the United States. In order to
make it easier to compare the performances of different economies, the United
States also releases GDP figures.
Consumption Spending is made possible by personal income and
discretionary income. The decision by consumers to spend or to save is
psychological in nature. Consumer confidence is also measured as an important
indicator of the propensity of consumers who have discretionary income to
switch from saving to buying.
Investment (or gross private domestic) Spending consists of
fixed investment and inventories. Government Spending is very influential in
terms of both sheer size and its impact on other economic indicators, due to
special expenditures. For instance, United States military expenditures had a
significant role in total U.S. employment until 1990. The defense cuts that
occurred at the time increased unemployment figures in the short run. Net Trade
is another major component of the GNP. Worldwide Internationalization and the economic
and political developments since 1980 have had a sharp impact on the United
States' ability to compete overseas.
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