ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumption, government spending, net exports, and treasury bonds
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Consumption, Interest payments, government spending, and net exports
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Consumption, aggregate demand, aggregate supply, and net exports
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Consumption, investment, government spending, and net exports
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Detailed explanation-1: -The GDP calculation accounts for spending on both exports and imports. Thus, a country’s GDP is the total of consumer spending (C) plus business investment (I) and government spending (G), plus net exports, which is total exports minus total imports (X – M).
Detailed explanation-2: -Gross Domestic Product (GDP) is the aggregate value of goods and services produced within the domestic territory of a country. GDP includes the replacement investment of the depreciation of capital stock. The total amount of goods and services generated in a country throughout a financial year is referred to as GDP.
Detailed explanation-3: -an approach to calculating GDP that involves adding up all of the income earned within the borders of a country in a given year; the income approach adds up wages, rents, interest, and profits.
Detailed explanation-4: -Aggregate demand is the sum of four components: consumption, investment, government spending, and net exports. Consumption can change for a number of reasons, including movements in income, taxes, expectations about future income, and changes in wealth levels.