2006-07-17 13:02:12 · 2 answers · asked by mairas0315 1 in Business & Finance ➔ Other - Business & Finance
The main factors going into GDP are consumption, investment, government spending, and net exports.
The main driver is probably private consumption.
2006-07-17 16:24:51 · answer #1 · answered by Arbitrage 7 · 0⤊ 0⤋
There are at least two ways of explaining this.
On the one hand, GDP is the sum of consumption, investment, government expenditure and net exports. So a country's GDP is driven by consumers' demand, business investment, government spending, and other countries' willingness to buy the country's exports.
On the other, real GDP growth can be thought of as growth in labor force plus growth in productivity less inflation. Growth in labor force depends on both population growth and unemployment. Productivity depends on improvements in technology and organization. Inflation depends on money supply and inflationary expectations.
Complicated, huh? :)
2006-07-18 11:55:46 · answer #2 · answered by NC 7 · 0⤊ 0⤋