ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumption Expenditures
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Investment Expenditures
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Government Expenditures
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Net Imports
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Detailed explanation-1: -In calculating GDP, investment does not refer to the purchase of stocks and bonds or the trading of financial assets. It refers to the purchase of new capital goods, that is, business equipment, new commercial real estate (such as buildings, factories, and stores), residential housing construction, and inventories.
Detailed explanation-2: -1. Personal Consumption Expenditures. Consumer spending contributes almost 70% of the total United States production.
Detailed explanation-3: -gross private domestic investment (Ig)
Detailed explanation-4: -Examples of Final Products When a bakery makes cakes and other pastries, the raw materials are sugar, flour, milk, butter etc. The bases of the cakes, frosting, and fillings are part of the work-in-progress materials. At last, the final products are the cakes when decorated and ready to be sold to customers.