Components of GDP Flashcards
1
Q
Gross Domestic Product–functions as a “report card” for the economy
A
- private consumption
- government expenditures
- net exports
- investment
- growing GDP = growing economy
- shrinking GDP = shrinking economy
2
Q
remember this…
A
GDP = C + I + G + Net Exports
3
Q
component
A
- govt. purchasing weapons
- husband buying a card
4
Q
net exports consists of subtracting imports from exports. why is this done?
A
imports are not produced domestically
5
Q
decrease in GDP
A
economic recession
