ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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General Motors buys new automated equipment for use in building cars. This falls under ____
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consumption
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investment
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government spending
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export spending
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Explanation:
Detailed explanation-1: -The sales of used goods are not included because they were produced in a previous year and are part of that year’s GDP. The entire underground economy of services paid “under the table” and illegal sales should be counted-but is not-because it is impossible to track these sales.
Detailed explanation-2: -Textbooks often capture this in one relatively simple equation: GDP = C + I + G + (X – M). Notice that, here, imports (M) are subtracted.
Detailed explanation-3: -Real GDP. the total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year.
There is 1 question to complete.