Residential investment consists of private structures, improvements to existing units, and mobile homes. Government expenditures includes purchases of goods, services, and structures from domestic firms and from the rest of the world by federal, state and local government. This category includes compensation paid to government employees, tuition payments for higher education and charges for medical care. Transfer payments, such as social insurance payments, government medical insurance payments, subsidies and government aid are NOT included as a part of government expenditures. Exports consists of goods and services that are sold to non-residents.
Imports includes goods and services purchased from the rest of the world.
The difference between exports and imports, EX - IM, is often referred to as net exports.