What are the four major components of expenditures in GDP?
Understand the Problem
The question is asking about the main categories that make up expenditures in the context of Gross Domestic Product (GDP). This typically refers to consumption, investment, government spending, and net exports.
Answer
Consumption, investment, government spending, and net exports.
The four major components of expenditures in GDP are consumption by households, investment by businesses, government spending on goods and services, and net exports.
Answer for screen readers
The four major components of expenditures in GDP are consumption by households, investment by businesses, government spending on goods and services, and net exports.
More Information
These four components represent all the expenditures made in an economy, thereby measuring its total economic activity.
Tips
Make sure to differentiate between GDP components and other economic measurements such as GDP income.
Sources
- The web page with info on - Example Source - investopedia.com
- 4 Components of GDP explained, Equation of GDP - ilearnthis - ilearnthis.com
- Components of GDP: Explanation, Formula And Chart - thebalancemoney.com
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