ECONOMICS
INFLATION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Consumer Spending
|
|
|
Investment
|
|
|
Savings
|
|
|
Net Exports
|
Detailed explanation-1: -The correct option is option A). Transfer payments are not a component of the GDP.
Detailed explanation-2: -Answer and Explanation: The correct option is (c) Taxes. Mathematically, the gross domestic product can be written as: Gross Domestic Product (GDP) = Consumption (C) + Investment (I) + Net Exports (NX) + Government Spending (GS)
Detailed explanation-3: -There are four main components of GDP, or parts of GDP. The four components of gross domestic product include the consumption of goods and services, government spending, business investment, and net exports.
Detailed explanation-4: -When using the expenditures approach to calculating GDP the components are consumption, investment, government spending, exports, and imports.
Detailed explanation-5: -Intermediate goods that have been turned into final goods and services (e.g. tires on a new truck) Used goods. Transfer payments. Non-market activities. Illegal goods.