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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)
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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
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Components of GDP(1)Consumption (c) - Durable goods - Non-durable goods - Services (2) Investment (I) (3)Government spending (G) (4)Net exports (X-M)
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(1)Consumption (c)
“C” is private consumption the economy. Consumption is spending by households on goods & services.
Include - food - rent - medical expenses
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(1) Durable goods
This items have larger life span. Consider similar to a consumer investment8% GDPIts components - autos(3.6%) - furniture(3%)
Ovens
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Examples of durable goods
- Refrigerators- Washing machine-Toster- Ovens & etc.
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(2) Non –durable goods
Non durable items have shorter life span. 20% GDPIts components -food(10%) -clothing(2.7%) -fuel(2.4%)
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Examples of Non-durable goods
-Groceries-News paper-Foods-Cloths
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(3)Services:
Fastest growing component of component of consumer purchases has been the area of services40% GDP components -real estate(10%) -helthcare(12%)
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Examples of services
-Medical treatment-insurance -banking
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(2) Investment (I)
“I” is defiend as business investment capital.Ex. Investment in new mine company……..
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(3) Government spending (G)
“G” is the sum of expenditure on final goods and services. in concerned -salaries -weapons for military -etc.
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Examples of government spending
WeaponsSalaries & Etc.
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(4) Net exports (X-M)
(x-m) is gross exports.Incleding goods and services.
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CONCLUSION
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THANK YOU
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