Components of Consumption and Their Changes From 1959 until 1999. Gross Domestic Product (GDP) is the final value of all goods and services produced domestically in a year, minus any trade deficit. It can also be interpreted as the sum of the total spending of its component parts. There are several components of GDP, and those include Consumer Spending (C), commercial and residential Investment Spending, Government Spending, and Net Exports (value of all exports minus the value …showed first 75 words of 1061 total…

…showed last 75 words of 1061 total…short run increases output and therefore income, but in the medium to long run will cause slower accumulation of capital and therefore slower growth of output and income. Chart 1. Changes in GDP and its Consumer Spending Components (1955-99) Chart 2. Changes in Consumer Consumption and it’s Components as a % of GDP (1959-99) ------------------------------------------------------------------------ **Bibliography** all data taken or derived fron the appendix to "the economic report of the President" available online at www.cbo.gov.