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investment
If you mean the expenditure approach to calculating GDP, then C+I+G+NX Investment is the most volatile, meaning that it changes the most with aggregate shocks to the economy. Some measures of consumtpion like durable goods are also volatile.
it is consumption
consumption
household consumption.
investment
If you mean the expenditure approach to calculating GDP, then C+I+G+NX Investment is the most volatile, meaning that it changes the most with aggregate shocks to the economy. Some measures of consumtpion like durable goods are also volatile.
it is consumption
consumption
household consumption.
consumption
Because real GDP compares gross income of different years with one year's prices (to better reflect the change), and since prices are demand-determined, so is GDP.
Why doesn't an increase in aggregate demand translate directly into an increase in real GDP
The smallest component of GDP is net exports. The value of imports, the purchases by United States citizens of foreign-produced goods, is subtracted from the value of exports.
AD is reduced and so is GDP
The most influential factors are:The increased demand of dollarSlowdown in GDP growthInflation
Economists use many abbreviations. One of the most common is GDP, which stands for gross domestic product. It is often cited in newspapers, on the television news, and in reports by governments, central banks, and the business community.