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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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