The document summarizes the key components of Gross Domestic Product (GDP): 1) Consumption (C) which includes durable goods, non-durable goods, and services. Durable goods have a longer lifespan while non-durable goods have a shorter lifespan. Services are the fastest growing component. 2) Investment (I) which refers to business investment in capital. 3) Government spending (G) which is the sum spent on final goods and services by the government including salaries and weapons. 4) Net exports (X-M) which is gross exports minus imports of goods and services.

1. Powerpoint Templates ECONOMICS FOR MANAGERS

2. Components of GDP Prsentor by: - Snehal A. patel (E.no.-2026) - Komal nakrani (E.no.-2035)

3. 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

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

5. Consumption (c) “ C” is private consumption the economy. Consumption is spending by households on goods & services. Include - food - rent - medical expenses

6. (1) Durable goods This items have larger life span. Consider similar to a consumer investment 8% GDP Its components - autos(3.6%) - furniture(3%) Ovens

7. Examples of durable goods - Refrigerators Washing machine Toster - Ovens & etc.

8. (2) Non –durable goods Non durable items have shorter life span. 20% GDP Its components -food(10%) -clothing(2.7%) -fuel(2.4%)

9. Examples of Non-durable goods -Groceries -News paper -Foods -Cloths

10. ( 3)Services : Fastest growing component of component of consumer purchases has been the area of services 40% GDP components -real estate(10%) -helthcare(12%)

11. Examples of services -Medical treatment -insurance -banking

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

13. (3) Government spending (G) “ G” is the sum of expenditure on final goods and services. in concerned -salaries -weapons for military -etc.

14. Examples of government spending Weapons Salaries & Etc.

15. (4) Net exports (X-M) (x-m) is gross exports. Incleding goods and services.

16. CONCLUSION

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