List and briefly describe the 4 categories of expenditures included in GDP
What will be an ideal response?
1. Consumption, or personal consumption expenditures, is the purchase of new goods and services by households.
2. Investment, or gross private domestic investment, is spending by firms on new factories, office buildings, machinery, and additions to inventories, plus spending by households and firms on new houses.
3. Government, or government purchases, is spending by federal, state, and local governments on goods and services.
4. Net exports is the value of all exports minus the value of all imports.
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If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is:
a. 10.2 b. 102 c. 37.1 d. 371 e. 321
Offshoring refers to the the process in which: a. a firm hires laborers from a foreign market
b. a firm purchases service from another firm. c. a firm purchases service from another firm in another country. d. workers of a particular country seek employment in a firm of a foreign country. e. the government of a country works toward providing social security and other rights to migrant workers.