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Q. The table below lists gross domestic product (GDP), consumption (C), gross private domestic investment (I), government spending (G) also net exports (X 􏰂 M). Calculate every as a percent of GDP for the 5 years presented.

Year GDP C I G X-M C(%) i(%) g(%) X-M(%)

1965 719.1 443.8 118.2 151.5 5.6
1975 1638.3 1034.4 230.2 357.7 16
1985 4220.3 2720.3 736.2 879 -115.2
1995 7397.7 4975.8 114 1369.2 -91.4
2005 12455.8 8742.4 2057.4 2372.8 -716.7

A. Which component of GDP is the most stable? Look for the smallest change from the year with the smallest contribution to GDP to the year with the largest contribution.

B. Which is the most volatile as a percent of GDP?

c. Ignoring net exports, which component has grown the fastest as a percent of GDP since 1965?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9162936

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