Which Component Of GDP Is The Most Stable?

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Chapter 15 Question 11 Year | GDP | C | I | G | X-M | C (%) | I (%) | G (%) | X-M (%) | 1965 | 719.1 | 443.8 | 118.2 | 151.5 | 5.6 | 61.72% | 16.44% | 21.07% | 0.78% | 1975 | 1638.3 | 1034.4 | 230.2 | 357.5 | 16 | 63.14% | 14.05% | 21.82% | 0.98% | 1985 | 4220.3 | 2720.3 | 736.2 | 879 | -115.2 | 64.46% | 17.44% | 20.83% | -2.73% | 1995 | 7397.7 | 4975.8 | 1144 | 1369.2 | -91.4 | 67.26% | 15.46% | 18.51% | -1.24% | 2005 | 12455.8 | 8742.4 | 2057.4 | 2372.8 | -716.7 | 70.19% | 16.52% | 19.05% | -5.75% |

A. Which component of GDP is the most stable? Gross Domestic Product (GDP) is the measurement of the economy’s total output. A country’s gross domestic product is measured by four components. These components include: Consumption, Investments, Government purchases, and Net exports.
Consumption consists of the products and services that were purchased by residents. These products consist of durable and nondurable goods. Durable goods would be items such as, cars, home appliances, electronics, furniture, and firearms. Nondurable goods are the opposite of durable goods. These items consist of food, fuel, medication, clothing and footwear. Consumption as a whole would be considered the biggest portion of GDP and would be considered the most stable.

B. Which is the most volatile as a percent of GDP? Investments would be considered the most volatile as a percent of GPD. Investments are things such as equipment, buildings software and changes in private business inventories. This would be considered the most volatile component of GDP.

C. Ignoring net exports, which component has grown the fastest as a percent of GDP since 1965?

According to the table above Consumption has accumulated to fasted growing growth since 1965.

Chapter 16 Question 11

Describe the three types of unemployment. What types of government programs would be most effective in combating each type of unemployment?

The three types of unemployment are: frictional, structural, and cyclical. Frictional unemployment is also known as natural unemployment or unemployment experienced by workers who are between jobs. This is when workers voluntarily quit their current positions for a better job opportunity. Government programs that are in place for this form of unemployment would be job agencies that are formed by the government. Training programs would also be used for this form of unemployment as well. These two actions would place individual with jobs, as well as give them training for job opportunities that may be available.

Structural unemployment is caused by changes in technology or changes in the structure of consumer demands. For