The Correlations of America’s Private Consumption and Private Investment to Real GDP Comparison

DOI

10.2991/978-94-6463-098-5_112How to use a DOI?

Keywords

Consumption; Investment; GDP; Correlation

Abstract

In the macro-side of readjusting and controlling economic activities, it is crucial for government to determine the relationship between private consumption and private investment with GDP (Gross Domestic Product) each. The greater understandings on how these two sectors fluctuate with GDP may allow the government to maximize its effectivity in macro-economic policy decision making. Collected from Bureau of Economic Analysis, data of America’s consumption, investment, and GDP from 1981-2020 are analyzed through detrending to understand the correlations between. Based on the two figures, I find that the correlation between investment and GDP is less coherent and fluctuated than the correlation between consumption and GDP.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Hanson Hanxi Jin
PY  - 2022
DA  - 2022/12/27
TI  - The Correlations of America’s Private Consumption and Private Investment to Real GDP Comparison
BT  - Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
PB  - Atlantis Press
SP  - 983
EP  - 989
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-098-5_112
DO  - 10.2991/978-94-6463-098-5_112
ID  - Jin2022
ER  -