Unformatted text preview: a. Does not count real estate resales E. Government spending is 20% of GDP 1. State and local governments produce 12% of GDP 2. Federal Government produces 8% of GDP a. Two-thirds is defense-related spending F. Imports and exports have opposite effects on GDP 1. Exports add (raise) GDP, while imports subtract from GDP a. Imports exceed exports, so net effect of trade is a deficit b. Imports are growing faster than exports due to job outsourcing in manufacturing G. GDP per capita is used to compare GDP between countries 1. Divides a country’s economic output by its population 2. Basically, total production value distributed evenly amoung nation’s people...
View Full Document
- Spring '12