Part (a) Government Consumption Expenditure NMRP and Gross Fixed Capital Formation (investment) NPQS
The data is collected from the year 1929 to year 2010. The graph shows the linear aggression. The graph shows the data of past 84 years of the company. The graph shows a rising trend initially, which later had up and down trend. This shows that the government did the private domestic investment which helped the country in making the GDP better. The graph shows that the time came when the level of investment decreased but the consumption expenditure kept increasing (Walker, 2008). This had an effect on the country's GDP. Again the government took a step and the investment increased. Since year 2006, the Nominal Gross Private Domestic Investment started does decrease with the rising Nominal Government Consumption Expenditure. The data is based on the current prices.
Part (b) Government Consumption Expenditure NMRY and the Gross Fixed Capital Formation (investment) NPQT
The data is on the basis of chained volume measures. The graph shows the linear aggression (Smilde, 2004). The graph shows very interesting trend. The graph shows that there is no continuous trend throughout. Initially for couple of years the expenditure was more than the investment. The amount of investment in the initial years was lower than the amount of consumption expenditure. The graph moves up in a flat way, which shows that there is no massive growth by the government. After year 1993, the government got stable and the consumption expenditure did not increase massively, but the investment started increasing. Till year 2000, the investment increased with very less increment in the expenditure. For next two years, the investment decreased but not massively. From year 2002 to 2006, the investment again increased. Since 2006, the amount of investment decreased with the ...