ECON 2400 Lecture Notes - Lecture 21: Redistribution Of Income And Wealth, Real Change, Weighted Arithmetic Mean

• School: York University
• Department: Economics
• Course: ECON 2400
• Professor: prof Antone

Document Summary

As exports were less than imports in 2011, the united states ran a trade deficit in goods and services with the rest of the world that is, net exports were negative. Exports were 13. 8% of gdp in 2011 while imports were 17. 7% of gdp. Trade with the rest of the world in goods and services, therefore, is quite important to the u. s. economy. Government expenditures, which consist of expenditures by federal, state, and local governments on final goods and services, were 20. 1% of gdp in 2011. The main components of government expenditures are federal defense spending (5. 5% of gdp in 2011), federal nondefense spending (2. 7% of gdp in 2011), and state and local spending (11. 9% of gdp in 2011). The nipa also make the important distinction between government consumption and government gross investment, just as we distinguish between private consumption and private investment.