ECONOMICS
INFLATION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Consumption
|
|
|
Producer Price Index
|
|
|
Government spending
|
|
|
Investment
|
Detailed explanation-1: -The correct answer is Sales of final goods. Sales of final goods are included in the gross domestic product. GDP or Gross Domestic Product is the total value or market value of all the goods and services in a year in a country’s economy. Intermediate goods are not included while calculating 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: -The 4 important components used while calculating the Gross Domestic Product (GDP) are net exports, Government spending on services and goods, investments done by business, and consumption done by households.
Detailed explanation-4: -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