ECONOMICS
GDP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of the following in NOT part of the GDP equation
|
|
Consumer Spending
|
|
|
Demand Spending
|
|
|
Business Investment
|
|
|
Government Spending
|
Explanation:
Detailed explanation-1: -Gross Domestic Product (GDP) components include consumption, investment, government spending or purchase, and net exports (exports-imports). The trade balance is not a component of GDP.
Detailed explanation-2: -Not all productive activity is included in GDP. For example, unpaid work (such as that performed in the home or by volunteers) and black-market activities are not included because they are difficult to measure and value accurately.
Detailed explanation-3: -GDP measures the total goods and services produced within the economy during a given period. Therefore, imports (which are goods and services produced outside the country) are not included. Hence, the correct answer is the option b) imports
There is 1 question to complete.