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Y_Kistochka [10]
3 years ago
15

Expenditures on a nation's domestic production Group of answer choices are less than its domestic production. are equal to its d

omestic production. are greater than its domestic production. could be less than, equal to, or greater than its domestic production.
Business
1 answer:
malfutka [58]3 years ago
5 0

Answer:

are equal to it's domestic production

Explanation:

A country's Gross Domestic Product (GDP) is defined as value of all goods and services produced in a country during a given time. Domestic production refers to those goods and services produced at home for local consumption.

Expenditure refers to the monies expended by all entities namely; household, firms and government on goods and services with a country.

When all the entities involved in generating a country's GDP spend their money towards purchasing goods and services produced in a country, then local producers would have more money to buy materials that will be used for further production. The higher the money spent, the higher the production and vice versa.

The above is a cycle that is repeated each time household, firms and government buys locally produced goods hence expenditure on a nation's domestic production equal to it's domestic production.

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