ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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YES
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NO
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Either A or B
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None of the above
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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: -The government expenditure component of GDP includes: purchases of final goods and services. Net exports equal: exports minus imports.
Detailed explanation-3: -Government purchases are expenditures on goods and services by federal, state, and local governments. The combined total of this spending, excluding transfer payments and interest on the debt, is a key factor in determining a nation’s gross domestic product (GDP).
Detailed explanation-4: -Understanding Gross Domestic Product (GDP) The calculation of a country’s GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted).