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The most recent government shutdown and possible future shutdowns affect which component(s) of the GDP function?

The most recent government shutdown and possible future shutdowns affect which component(s) of the GDP function?

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Answer #1

Present and the Future shutdown of the government will affect the consumption because the salary of the 800 thousand people working directly for the government will not receive their dues. It will decrease the consumption in the market.

It will affect the government expenditure because if the government is not functioning they cannot do any expenditure and it will affect the government expenditure.

it will affect the investment in the economy as there is uncertainity in the market and people will delay consumption and that could affect the market sentiments and thereby the investment in the market.

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