Mr. Reactionary
blackraisin
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Posts: 17,804
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E: 5.45, S: -3.35
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« on: April 04, 2017, 07:55:26 PM » |
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Macro tends to heavily focus on gdp which is good, because it involves real numbers unlike micro.
The formula for GDP is: GDP = C + I + G + (Ex - Im), where “C” equals spending by consumers, “I” equals investment by businesses, “G” equals government spending and “(Ex - Im)” equals net exports, that is, the value of exports minus imports.
Transfer payments like welfare are not factored in at this stage.
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