Question

1. Measured in current US dollars China’s GDP is smaller than that of the US; but the total investment expenditures in China, measured in US dollars, is much higher in China. Why is that?

Answer 1

GDP includes all the economic activities that take place within the geographic territory of nation and the residents of individuals in nation . It is nothing but the Economic calue as a whole  as a whole. GDP of china is 13.27 trillion (in 2008)which is 7.31 trillion less then u.s

Where as investment expenditure refers to the expenditure incurred by firm ,housrhold or by the goverment to create new capital assts and in which china is more fast then usa as they contribute nearly 41%of their gdp in investment and USA did nearly 21%, we agreed that higher investment expenditure means we grow good but we cannot use only investment expenditure for gdp we also see other things as well.