Question

What is (just) one specific example of how the Gross Domestic Product (G.D.P.) could decrease in the U.S. during this calendar year (2020)?

Your posting should be at least two paragraphs long, and demonstrate how (just) one of the components of the "Expenditures Approach" ( Personal Consumption, Gross Private Investment, Government Consumption and Investment, Net Exports) could decrease and thereby make the total measured output of the country lower.

Answer 1

There is a very strong possibility of the GDP of the US decreasing in 2020.

GDP = Conusmption + investment + Government expenditure + Net exports

Thus, if consumption declines by a lot, and the other factors adding to GDP do not change by much, than the overall GDP can decline in 2020.

the economy has been hit by the Covid-19 pandemic. It has resulted in both a supply and demand shock. As firms can not produce due to lack of labor or raw materials, they engage in laying off workers. As such the unemployment rate in the economy increases by quite a lot. As more and more people lose purchaing power due to reduced incomes, their demand decreases and the consumption goes down significantly. As a result, GDP can go down despite efforts to compensate for lack of private expenditure by increased government expenditure.