ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumer spending
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Rental payments
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Net exports of goods and services
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Gross domestic investment
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Government purchases of goods and services
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Detailed explanation-1: -GDP is the total of spending on the four categories. Consumption consists of purchases of final goods and services, ranging from automobiles to college tuition, by individuals. Consumption is the largest category of GDP-it accounts for 69 percent of GDP in the United States. Investment includes three types of spending.
Detailed explanation-2: -Consumer spending comprises 70% of GDP. The retail and service industries are critical components of the U.S. economy.
Detailed explanation-3: -Increases in personal consumption expenditure, and private domestic investment were the main drivers of the GDP growth. Personal consumption was the largest factor of the GDP, by increasing by 7.9 percent from the previous year.