ECONOMICS
GDP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Government Spending
|
|
|
Stocks and Bonds
|
|
|
Household Spending
|
|
|
None of the above
|
Detailed explanation-1: -Economists divide the spending on an economy’s goods and services into four components: Consumption, Investment, Government Purchases, and Net Exports.
Detailed explanation-2: -GDP can be expressed as an equation that sums up all of its components: a nation’s level of consumption, investment, government spending on goods and services, and the difference in profit between exports and imports.
Detailed explanation-3: -Aggregate demand is the sum of four components: consumption, investment, government spending, and net exports. Consumption can change for a number of reasons, including movements in income, taxes, expectations about future income, and changes in wealth levels.
Detailed explanation-4: -There are three categories of consumer spending: durable goods, nondurable goods, and services.