ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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GDP increases
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GDP decreases
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No change
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None of the above
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Detailed explanation-1: -It has the world’s second largest economy by nominal GDP, totaling around US $18.321 trillion in 2022, and the world’s largest economy since 2016 when measured by purchasing power parity (PPP). China accounted for 18.6% of global economy in 2022 in PPP terms, and around 18% in nominal terms in 2022.
Detailed explanation-2: -Consumption expenditure by households is the largest component of GDP, accounting for more than two-thirds of the GDP in any year. This tells us that consumers’ spending decisions are a major driver of the economy.
Detailed explanation-3: -GDP = private consumption + gross private investment + government investment + government spending + (exports – imports). GDP is usually calculated by the national statistical agency of the country following the international standard.