The Pros And Cons Of The Gross Domestic Product

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 …show more content…
When the Gross Domestic Product decreases that means the market value of the goods and services in my country that I may produce or hold stock in, it definitely affects me not only financially but also what steps need to be taken next. Also if there was a change in unemployment whether positive or negative it affects me directly as a college student who is studying to get a degree and one day enter the Labor Force. So a change in unemployment would change the nature of the job hunt I experience as soon as I graduate from the University of San Diego. In terms of inflation having an affect on me, Inflation affects the purchasing power of the consumer. I although I try and not blow through my paychecks; I do enjoy spoiling myself every once in awhile and having to pay extra for normal goods affects a college student like myself who tries to stay to a strict budget. Although I am one of many, the decisions and policies put in place do take a toll on my wallet just as it would any middle-class suburban