Real Gross Domestic Products in US

Real Gross Domestic products in US

Introduction

The article which is published in The Bureau of Economic analysis in 2013 with the topic of National Income and Product Accounts has been used in this assignment in response to the questions given in the assignment (Lisa S. Mataloni, 2013). The article has analyzed the effect of Real Gross Domestic Products and their consumption patterns in the US. The real GDP has been increased in the current quarter of the year as it was lower in the second quarter. The article has further discussed various incomes related to the individuals.

Discussion

The Trends in Consumption Patterns

Consumption patterns as defined by Gerbens et al, is an aspect of the human life style in which a person utilizes different products or services for satisfying its needs or wants (Gerbens et al, 2010).US has observed an increase in its GDP products in the third quarter of the year 2013. The real GDP of its local products has been increased at the arte of 1.8% as it was 2.5% in the second quarter of the year. The increase in real GDP in the third quarter as compared to the second quarter has revealed that the consumption patterns of people in USA are progressive in nature.

The US Bureau of Economic Analysis has observed that consumer's trends are changing and they are becoming more price sensitive. It has been mentioned that the private consumption expenditure of the consumers has increased. Thus, it is an indicator that an increased consumption would have lead to an increased production of goods and services. It also reveals that the private inventory investment also increased, indicating that there had been an increase in the investment of domestic goods and services. This would have inevitably led to an increase in the national production of goods and services. The exports have also been on the increasing trend, which has also contributed to the GDP growth. However, the imports have also increased combined with decreases in public expenditure by the government. These offset, however, has not affected the real GDP growth, and can be described as an insignificant offset.

The Utility Derived from a Product

The word utility means happiness or satisfaction gain after utilizing a product or service. The utility derived from a product directly relates to the human behavior Model of Utility Maximization. This model states that consumer only spend their money on those products which can give them maximum satisfaction (Beggs, 2013). It has been mentioned in the article that consumer's utility mostly derived from Gross Domestic Products excluding food products.

Electronic market is the major contributor of the US GDP rate. This industry provides huge revenues to the country's GDP rate and US can make its GDP rate better by investing in this sector and bringing new and innovative electronic products for the customers. Electronic Products are called as luxurious products in other parts of the world but in USA people have taken these products as necessities of life due to their highly concern ...