Categorize each statements as a component of Gross Domestic Product (GDP): consumption, investment, government, or net exports.

Question

3 years ago

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If it is not included in GDP, leave it unplaced. Consumption Investment Goverment Net exports Answer Bank

1 answer:

Viefleur [7K] · Answer 1 · 2022-05-15T08:29:30+03:00

Answer:

'Government Expenditure' not 'Government' is a component of GD[

Explanation:

GDP is the total value of goods & services produced in an economy during an year.

As per Expenditure method :

It is calculated as 'expenditure' done by all sectors of economy as "<em>one person expenditure is other person income</em>".
4 sectors are : households , firms, government ,rest of the world.
Their respective demand expenditures are : Private Final Consumption Expenditure , Government Final Consumption Expenditure, Investment (Gross domestic Capital Formation) , Net Exports.