ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumption (Consumer)
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Investment (Business)
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Government Spending
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Exports-Imports
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Detailed explanation-1: -The expenditure method is the most common way of calculating a country’s GDP. This method adds up consumer spending, investment, government expenditure, and net exports. Aggregate demand is equivalent to the expenditure equation for GDP in the long-run.
Detailed explanation-2: -The expenditure approach to calculating gross domestic product (GDP) takes into account the sum of all final goods and services purchased in an economy over a set period of time. That includes all consumer spending, government spending, business investment spending, and net exports.
Detailed explanation-3: -GDP = private consumption + gross private investment + government investment + government spending + (exports – imports). GDP is usually calculated by the national statistical agency of the country following the international standard.
Detailed explanation-4: -GDP = C + G + I + NX. C = consumption or all private consumer spending within a country’s economy, including, durable goods (items with a lifespan greater than three years), non-durable goods (food & clothing), and services. More items •7 days ago