The Cost Of The Gross Domestic Product Essay

765 Words Feb 17th, 2016 4 Pages
An economy can usually be understood and judged on efficiency through a number of different statistics, one of these is the GDP or the Gross Domestic Product. The Gross Domestic Product is the sum of four different components: Consumption, Investment (business and personal), Government Purchases, and Net Exports. The anticipated cost of living in an apartment will eventually prevent people from moving out. This is because with a shortness in the labor force the supply for apartments goes down so the demand goes up causing the price of renting that apartment to skyrocket accordingly. With a spike in price going up that leaves people less money to save up and move out, which lowers the overall total of the Investments component of the Gross Domestic Product, thus lowering the GDP itself. When the construction business, a job deemed to be skilless, stops producing jobs it results in a flood of unskilled workers into the job search. This would be deemed as structural unemployment, a long term job hunt that often seems endless in the end. Another example of the Investments component of the Gross Domestic Product decreasing and causing a decrease in the GDP is, “Millennials are finally moving out of their parents ' basements, largely as a result of strong job growth.” Although these Millennials are now able to move out of their parents’ basements financially there is little guarantee that banks approve their requests for mortgages. According to Paul Davidson from USA Today, banks…

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