Gdp ppt

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ECONOMICS FOR MANAGERS

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Components of GDP

• Prsentor by:

- Snehal A. patel

(E.no.-2026)

- Komal nakrani

(E.no.-2035)


Components of GDP• Gross Domestic Product• How to solve GDP

Y = C + I + G + (X-M)

(1) (2) (3) (4) (1) consumption

(2) investment

(3) government

spending

(4) net exports


Components of GDP(1)Consumption (c) - Durable goods - Non-durable goods - Services (2) Investment (I) (3)Government spending (G) (4)Net exports (X-M)


(1)Consumption (c)

“C” is private consumption the economy. Consumption is spending by households on goods & services.

Include - food - rent - medical expenses


(1) Durable goods

This items have larger life span. Consider similar to a consumer investment8% GDPIts components - autos(3.6%) - furniture(3%)

Ovens


Examples of durable goods

- Refrigerators- Washing machine-Toster- Ovens & etc.


(2) Non –durable goods

Non durable items have shorter life span. 20% GDPIts components -food(10%) -clothing(2.7%) -fuel(2.4%)


Examples of Non-durable goods

-Groceries-News paper-Foods-Cloths


(3)Services:

Fastest growing component of component of consumer purchases has been the area of services40% GDP components -real estate(10%) -helthcare(12%)


Examples of services

-Medical treatment-insurance -banking


(2) Investment (I)

“I” is defiend as business investment capital.Ex. Investment in new mine company……..


(3) Government spending (G)

“G” is the sum of expenditure on final goods and services. in concerned -salaries -weapons for military -etc.


Examples of government spending

WeaponsSalaries & Etc.


(4) Net exports (X-M)

(x-m) is gross exports.Incleding goods and services.


CONCLUSION


THANK YOU

Gdp ppt

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