tag:blogger.com,1999:blog-6837159629100463303.post6195140381756375205..comments2023-06-18T01:25:08.748-07:00Comments on Information Transfer Economics: How RGDP got its slopes?Jason Smithhttp://www.blogger.com/profile/12680061127040420047noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6837159629100463303.post-87510240167304214012016-09-08T13:36:12.522-07:002016-09-08T13:36:12.522-07:00Well, NGDP = C + I + G + NX and I is the most cycl...Well, NGDP = C + I + G + NX and I is the most cyclical component, so with any recession a big change in RGDP = NGDP/P is going to be associated with a big change in I/P (real investment). A larger recession is going to have a larger fall in I/P.<br /><br />But as these are all just definitions. "I" is just the leftover partition of currently produced goods and services that aren't consumption, government spending or net exports (the well-defined three). Basically a fall in RGDP is a fall in at least one of, if not all four: C, I, G, and NX. However saying one or more of these components fell doesn't necessarily explain what has happened since those components are just names we've made up.<br /><br />For further (and more nuanced) thoughts on this, check <a href="http://informationtransfereconomics.blogspot.com/2016/03/does-saving-make-sense.html" rel="nofollow">this post</a> out.Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-66652163396974122422016-09-08T13:12:32.029-07:002016-09-08T13:12:32.029-07:00Perhaps I'm missing something, but I've th...Perhaps I'm missing something, but I've thought one large factor in the productivity slowdown since 2008 is the slowdown in investment that accompanies economic slowdowns.Antihttps://www.blogger.com/profile/17677035271760844211noreply@blogger.com