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Don't you always measure GDP using spending (for convince / accuracy of price) so if you import $1 trillion and don't sell it then the GDP is $-1 trillion? So
by lesuorac 1y ago
Don't you always measure GDP using spending (for convince / accuracy of price) so if you import $1 trillion and don't sell it then the GDP is $-1 trillion?
So Q1 is $-1 trillion and Q2 is $1 trillion?
IIRC, Investment is more of I bought machinery to make socks not I have 100 nintendo switches.
- Aloisius 1y agoI (investment) in the GDP includes changes in private inventory, not just spending on fixed assets, so the 100 nintendo switches should be in there. That's why in my example Q2 investment goes negative since inventories get depleted when they are sold.