GDP Components

August 31, 2009
Breakdown of 2008 GDP into CIGX

Breakdown of 2008 GDP into CIGX

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Gross Domestic Product (GDP)

August 23, 2009

“Real gross domestic product — the output of goods and services produced by labor and property located in the United States”. This is mainly used as a measure of economic output. You look for GDP going negative to signal a recession. The GDP itself is a huge economic indicator, but it pays to find out what goes into the GDP and look at the components.

The components of GDP are private consumption, investment, government spending, and exports minus imports or as an equation GDP = C + I + G + (X – M). Next time I will explore each of these components.


Bird’s Eye View

August 14, 2009

I haven’t been updating recently, but I plan to start writing again soon since I need to figure out what to invest in. I’ve been staying out of the market, because it was difficult for me to make sense of anything. To get back into the game, I am going to dissect GDP and look at opportunities there.