1. a. Complete the following table.
Type 1
4,532
Gross Domestic Product
Consumption
Investment
Government Purchases
Net Exports
b.
C.
d.
e.
589
861
-45
Chapter 23
Type 2
4,804
3,320
629
-58
Type 3
3,544
673
977
-54
What is the largest expenditure component of GDP?
Does investment include the purchase of company shares and bonds? Why?
Do government purchases include government spending on
unemployment benefit? Why?
What does it mean to say that net exports are negative?