Macroeconomics: Gross Domestic Product and Household Consumption in UK

Running head: MACROECONOMICS
Macroeconomics
Name of the Student
Name of the University
Course ID

1MACROECONOMICS
Table of Contents
Gross Domestic Product and its Components.................................................................................2
Household Consumption and Expenditure..................................................................................3
References list..................................................................................................................................6

2MACROECONOMICS
Gross Domestic Product and its Components
Gross Domestic product is the most appealing measure of aggregate national output. The
monetary values of the produced goods and services is expressed through the single composite
measure of GDP. It has four main components namely consumption expenditure, investment,
government expenditure and net export (Bernanke, Antonovics and Frank 2015). The trend in
gross domestic product of United Kingdom for the sample period of ten years is presented below
2006 2007 2008 2009 2010 2011 2012 2013 2014
1600000
1650000
1700000
1750000
1800000
1850000
1900000
1950000
Gross Domestic Product
Year
Million Pound
Figure 1: Trend in Gross Domestic Product of United Kingdom
(ons.gov.uk 2018)
Following the trend in Gross Domestic Product, it has been observed that GDP of UK has
increased sharply since 2009. GDP in the year 2006 was 1753486 million pound. GDP increased
to 1798121 million pound in the next year. After successive decline in GDP for the two
consecutive years of 2007 and 2008, GDP again followed an increasing trend
(data.worldbank.org 2018). Global financial crisis is one factor that caused a significant decline
in GDP in the during the period of 2007 – 2008.