ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -GDP is the sum of all the final expenses or the total economic output by an economy within a specified accounting period. It does not include the output of its underground economy. Consumer spending comprises 70% of GDP. The retail and service industries are critical components of the U.S. economy.

Detailed explanation-2: -Consumption is the largest component of the GDP. In the U.S., the largest and most stable component of consumption is services. Consumption is calculated by adding durable and non-durable goods and services expenditures.

Detailed explanation-3: -Consumption (C) Consumption represents the sum of goods and services purchased by citizens-such as retail items or rent-and it grows as more is consumed. It’s the largest component of GDP.

Detailed explanation-4: -United States Private Consumption accounted for 68.5 % of its Nominal GDP in Dec 2022, compared with a ratio of 68.1 % in the previous quarter. US Private Consumption contribution to Nominal GDP ratio is updated quarterly, available from Mar 1947 to Dec 2022, with an average share of 63.3 %.

Detailed explanation-5: -Household consumption as percent of GDP, 2021-Country rankings: The average for 2021 based on 126 countries was 63.01 percent. The highest value was in Somalia: 145.53 percent and the lowest value was in Libya: 22.73 percent.