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Showing posts from April, 2019

Components of Aggregate Demand

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Germany GDP (USD, Billions) Consumer confidence compared to GDP Consumer spending compared to GDP Business confidence compared to GDP Government spending compared to GDP Balance of trade compared to GDP Most indicators such as business confidence, and balance of trade have not followed GDP closely over the past twenty years. However, some indicators, such as consumer spending, consumer confidence, and consumer spending, have followed trends in the GDP a little closer. This could suggest more of a relationship between GDP and these indicators than others.

Germany's GDP

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Based on this graph, Germany's economy is currently in recovery. They just came out of a trough a couple years ago and are in a state of economic expansion.

Germany Statistics

Exports as a percentage of GDP: 46% of GDP (as of 2016) General government spending as a percentage of GDP: 43.9% of GDP (as of 2015) Net investment in non financial assets as a % of GDP: 0.655% of GDP (as of 2015) Tax revenue as a % of GDP: 36.5% of GDP (as of 2017) The savings rate as a % of GDP: 10.6% of GDP (as of 2015) imports as a % of GDP: 39.662% of GDP (as of 2015) Based on these figures, Germany has more injections into their economy than leakages.