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What's the objects or agreements to this statement? The aspects of GDP that are most affected when the economy slows down is the net exports
What's the objects or agreements to this statement? The aspects of GDP that are most affected when the economy slows down is the net exports and business investment. The reason being is that when the economy slows down too much, it causes companies to have to cut back on staff or spending in order to stay afloat due to the reduced revenue coming in. If the economy slows down, this means that goods and services would not be purchased as often meaning some companies could go out of business which would, of course, affect GDP. As noted in an online article "The formula to calculate the components of GDP is Y = C + I + G + NX.2 That stands for GDP = Consumption + Investment + Government + Net Exports, which are imports minus exports" (Boyle, 2022). As all four aspects would be affected in their own way, I could also say that consumption of goods and services is heavily impacted as consumers would slow down their spending on products to save in fear of not knowing what is going to happen in the economy. These economic slowdowns can have a trickle effect from huge corporations to smaller corporations as if one supplier goes down it could negatively impact major corporations that depend on that supplier for their products
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