ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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C
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I
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G
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(Ex-Im)
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Detailed explanation-1: -When using the expenditures approach to calculating GDP the components are consumption, investment, government spending, exports, and imports.
Detailed explanation-2: -GDP Formula The formula to calculate the components of GDP is Y = C + I + G + NX. 2 That stands for: GDP = Consumption + Investment + Government + Net Exports, which are imports minus exports. In 2019, U.S. GDP was 70% personal consumption, 18% business investment, 17% government spending, and negative 5% net exports.
Detailed explanation-3: -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-4: -The formula for GDP is: GDP = C + I + G + (X-M). C is consumer spending, I is business investment, G is government spending, and (X-M) is net exports.