Tuesday, January 11, 2011

Thermometer

See full size image-The top triangle of the pyramid Is the C+ in the GDP formula and it represents Personal Consumption Expenditures.

-The portion of the pyramid directly under that represents the I+ in the GDP formula and it represents the Gross Investment portion.

-The portion of the pyramid directly under that section is the G+ in the GDP formula which has to do witht the government purchases of goods and services.

-The portion of the pyramid under that section is the (X-M)= in the GDP formula which is the Net Exports of goods and services, and the Net Imports of goods and Services.

-Put all of those together and they create GDP (Gross Domestic Product).

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