After reading a report that says that around 70% of U.S. GDP is consumption, your friend Alex states, “ spending 70% of GDP on consumption is a lot. All people care about is buying stuff, consuming stuff, and accumulating stuff. We would be much better off if we spent our money on services or experiences”. Identify Alex’s misunderstanding of GDP.
After reading a report that says that around 70% of U.S. GDP is consumption, your friend Alex states, “ spending 70% of GDP on consumption is a lot. All people care about is buying stuff, consuming stuff, and accumulating stuff. We would be much better off if we spent our money on services or experiences”. Identify Alex’s misunderstanding of GDP.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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100%
After reading a report that says that around 70% of U.S. GDP is consumption, your friend Alex states, “ spending 70% of GDP on consumption is a lot. All people care about is buying stuff, consuming stuff, and accumulating stuff. We would be much better off if we spent our money on services or experiences”. Identify Alex’s misunderstanding of GDP.
![3. Aeter
around
Your Friend Alex states, " SPending 70 ole
& GDP on Consumption is
People Care about is
Stuff, and accumulating Stut. We would
be much better okf $ we SPent our
money on Ser Vices or ex Periences: Identif
Alex s m.sunder standing of GDP.
a refort that Sals that
70 olo ok U. S. GDP i$ conSumption,
16t. All
buyıng stutf, Consuming
reading](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5fe6a770-4876-4405-9e73-764712e123b4%2F4134696e-ede2-4990-903f-4563f3ecc431%2Furu78rw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Aeter
around
Your Friend Alex states, " SPending 70 ole
& GDP on Consumption is
People Care about is
Stuff, and accumulating Stut. We would
be much better okf $ we SPent our
money on Ser Vices or ex Periences: Identif
Alex s m.sunder standing of GDP.
a refort that Sals that
70 olo ok U. S. GDP i$ conSumption,
16t. All
buyıng stutf, Consuming
reading
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