The GDP refers to the market value of all services and goods a country produces at a given time (Bade, n.d.). It uses four components to measure the country’s economy i.e. consumption (C), investments (I), governments (G), and net exports (X-M) (where M are the imports and X the exports). It follows that the GDP= C+I+G+(X-M). Each of the components plays a role in the economy as described below.
Consumption
Under this category, the GDP focuses on the personal consumption expenditure. It is the most powerful component and can range between 65 to 70% of the ...
