ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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consumption
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investment
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government spending
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imports-exports
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Detailed explanation-1: -Investment – business spending or expenditures on new capital equipment, inventory, structures, and consumer spending or expenditures on new homes; Government – expenditures; Spending or expenditures on net exports – the trade balance.
Detailed explanation-2: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports. 1 That tells you what a country is good at producing. GDP is the country’s total economic output for each year.
Detailed explanation-3: -Investment includes spending on new equipment and structures, including households’ purchases of new housing. Government purchases include spending on goods and services by local, state, and federal governments.
Detailed explanation-4: -For example, inventories may contribute to an increase in GDP (1) by accumulating in the current period after decumulating in the preceding period, (2) by accumulating more in the current period than in the preceding period, or (3) by decumulating less in the current period than in the preceding period (table 7.2).
Detailed explanation-5: –Final consumption expenditure.-Gross fixed capital formation.-Investment in inventories.-Exports of goods and services.-Imports of goods and services. 17-May-2019