Question

An example of consumer spending when calculating the GDP using the expenditures approach is _____.

Answer 1

Answer:

a) food

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period.

The expenditure approach to calculating GDP = Consumption spending + Investment spending + Government Spending + Net Export

Consumption spending includes all final private consumption in an economy. Spending on food is an example of consumption spending.

Government spending is all the money spent by the government. Payment of salaries of public employees is an example of government spending.

Investment spending is all the amount spent by businesses in buying equipment. construction of a new mine is an example of investment spending.

Net Export is export less import.

I hope my answer helps you.