Which is the largest components contributing to the U.S. GDP?
• Answer : Consumption (occupies approximately 70% of the total nation’s GDP). • • From 2004 to 2007, the percent change in consumption decreased slightly. However, from 2007 to 2008, it decreased dramatically from 2.8% to 0.2% • • In the fourth quarter of 2008, the total of consumption decreased 235.6 billions less than in the third quarter of 2008 • • From 2004 to 2007, in general, the percent changes in durable goods, nondurable goods and services were quite stable though there were some slight decreases. • There were significant decreases in the percent changes of the components of consumption in 2008. • • In general, the percent change of durable goods decreased most significantly, next is nondurable goods and the last is services • INVESTMENT • Definition: • Spending on capital, equipment, inventories, and structures, including household purchases of new housing • Note: • Investment in GDP is different from financial investment, such as stock, bonds… • The types of investment • I
