ECONOMICS (CBSE/UGC NET)

ECONOMICS

GDP

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The U.S. government agency NASA contracts with a firm in Alabama to provide parts for the space station. Where would this show up in the GDP formula?

A	Consumption
B	Investment
C	Government Spending
D	Exports-Imports

Explanation:

Detailed explanation-1: -GDP Formula The formula for calculating GDP with the expenditure approach is the following: GDP = private consumption + gross private investment + government investment + government spending + (exports – imports).

Detailed explanation-2: -Who calculates GDP? Economists at the U.S. Bureau of Economic Analysis estimate GDP using thousands of data points gathered by other federal agencies and some private data collectors. BEA is a nonpartisan, nonpolitical statistical agency. Its data are free to all on bea.gov.

Detailed explanation-3: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.

Detailed explanation-4: -What is Gross Domestic Product? A comprehensive measure of U.S. economic activity. GDP measures the value of the final goods and services produced in the United States (without double counting the intermediate goods and services used up to produce them).

There is 1 question to complete.