Question

what the most recent estimate for real GDP and list each of its components:
C (Personal consumption expenditures) =________________, I (Gross private domestic investment)=_________________, G (government consumption expenditures and gross investment)=_____________, NX (Net exports of goods and services)=______________.

what is happening in the US right now. Why does consumer spending tend to be considered a stable portion of GDP, when compared to investment spending?

Answer 1

According to the data published in May 2019, the data of the first quarter of 2019 gives us the following information:

C = $13,075.1bn

The components of consumption are

• Goods: Durable goods, Motor vehicles and parts, Furnishings and durable household equipment, Recreational goods and vehicles, Other durable goods, Nondurable goods, Food and beverages purchased for off-premises consumption, Clothing and footwear, Gasoline and other energy goods, Other nondurable goods;
• Services: Household consumption expenditures (for services), Housing and utilities, Health care, Transportation services, Recreation services, Food services and accommodations, Financial services, and insurance, Other services, Final consumption expenditures of nonprofit institutions serving households, Gross output of nonprofit institutions, Less: Receipts from sales of goods and services by nonprofit institutions

I = $3,504.2bn

• Fixed investment: Nonresidential, Structures, Equipment, Information processing equipment, Industrial equipment, Transportation equipment, Other equipment, Intellectual property products, Software, Research and development, Entertainment, literary, and artistic originals, Residential
• Change in private inventories: Farm, and Nonfarm

G = $3,208.1bn

• Federal: National defense and non-defense
• State and local

NX = $-903.6bn (trade deficit)

• Exports: Goods and Services
• Imports: Goods and Services

The reason why consumer spending tends to be considered a stable portion of GDP when compared to investment spending is that the US population lives in easy access (geographically) to the markets. Also, the US businesses have come to know exactly what the US population demands and hence are catering to their needs in that way. Moreover, the US market has also come to be as a sort of a test market for new products due to its stability of consumption.