The conversation between human and AI assistant.
Is it not possible to increase the GDP number by producing a lot of goods and services without anyone actually consuming them?
That makes sense. But what about government spending? Can't that also contribute to GDP without actual consumption by individuals?
Yes, that's correct. Government spending can also contribute to GDP without individual consumption. For example, if the government invests in infrastructure or education, it can increase the long-term productivity of the economy, even if there isn't immediate consumption by individuals. However, it's still important for there to be eventual consumption or investment stemming from the initial government spending in order for the economic growth to be sustained.