Describe the volatility of government spending and net exports relative to that of GDP and suggest an explanation for the patterns you observe in the graph. FREDShares of gross domestic product: Net exports of goods and servicesShares of gross domestic product: Government consumption expenditures and gross investment2.52.01.51.00.50.0-0.5-1.0-1.5197519801985199019952000200520102015Source: U.S. Bureau of Economic Analysisfred.stlouisfed.orgChange from Year Ago, Percent

The components of the GDP here, that is the government spending & the exports of goods &…

Answered: Describe the volatility of government…

Describe the volatility of government spending and net exports relative to that of GDP and suggest an explanation for the patterns you observe in the graph.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Describe the volatility of government spending and net exports relative to that of GDP and suggest an explanation for the patterns you observe in the graph.

FRED
Shares of gross domestic product: Net exports of goods and services
Shares of gross domestic product: Government consumption expenditures and gross investment
2.5
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
-1.5
1975
1980
1985
1990
1995
2000
2005
2010
2015
Source: U.S. Bureau of Economic Analysis
fred.stlouisfed.org
Change from Year Ago, Percent

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