General GDP
What does GDP stand for?
Gross Domestic Product
What percent of GDP does consumer spending make up?
70%
Percentage of GDP that is business spending
18%
What is the percentage that gov. spending makes of the GDP
The average percentage that the net exports accounts for in the GDP
Around -5%, Net exports (usually) bring the GDP Score down.
What are the four components of GDP?
Consumer Spending, Business investments, Government spending, and Net Exports.
What color were the first oranges?
Green
What items do businesses buy?
Equipment
What role does it play for the GDP
It is almost always positive.
What is the difference between Nominal GDP & Real GDP?
Real GDP takes inflation into consideration when calculating final GDP, where Nominal does not take it into consideration.
Give 3 examples of consumer spending
Ex:
-buying a boat
-groceries
-buying a new car
When does business investment spending go up?
When consumer spending goes up.
The amount of money Government spending was in 2019
$4.4 Trillion
How might a country increase its net exports?
By increasing domestic production, and/or purchasing fewer foreign products.
What was the reported U.S GDP in 2019?
What is a final good? Why is it important to only count final goods?
A good at the final stage of production. It avoids double counting within consumer spending on goods/services.
The amount of investment spending in 2019 (In the US)
$3.42 Trillion.
What are the two types of government spending?
Discretionary & Mandatory
What do a positive net export and a negative net export mean? (Half of the total points per part.)
A positive means a trade surplus.
A negative means a trade deficit.
Why would a decrease in the GDP matter to citizens?
A decrease in the GDP, will usually cut the number of jobs available and will lead to wages being cut.
Give the definition of consumer spending
The total money spent on final goods and services by individuals or households for personal use.
The Definition of Business spending
The total amount of spending by businesses.
What are 3 of the 5 components to gov. spending.
The five are...Borrowing money, Defenses, Education cost, Foreign affairs, Transportation
What is "Net Exports"