Answer to Question #138790 in Macroeconomics for don

Question

Expenditure as a percentage of GDP
U.S. Country X
Personal consumption expenditures 67.86% 50%
Gross private domestic investment 17.50% 35%
Government consumption expenditures and gross investment
17.49% 10%
Exports of Goods and Services 11.73% 135%
Imports of Goods and Services 14.58% 130%
Net exports of Goods and Services -2.85% 5%

Businessmen concern about the economic environment of a country and its
business opportunities.
a. Which country is more likely to follow the principle of “Big Market, Small
Government”? Explain your answer.

Answer 1

US is more like to follow the principle of Big market, small government because; If GDP is rising, the economy is in solid shape, and the nation is moving forward. On the other hand, if GDP is falling, the economy might be in trouble, and the nation is losing ground.

US has less import, more expenditures, more exports than country X.