List the four components of GDP. Give an example of each.

Expert Solution

The four most important components of GDP are:-

1. Personal consumption expenditure

2. Investment expenditure

3. Government spending

4. Net Exports

1. Personal consumption Expenditure:-

This component of GDP refers to the money spent by the households and other non profit organisation for their personal or private consumptions. It includes the consumption Expenditure on durable and non durable Expenditures.

For example durable goods like cars, refrigerators etc. and non durable goods like clothing, groceries etc.

2. Investment expenditure:-

It refers to the expenses incurred by an individual or a firm on final goods and services or on purchase of productive capital goods.

Example capital goods like factories,machineries, vehicles etc.

3. Government spending:-

It refers to the expenditure on goods and services made by the government which includes all the government consumption, Investment and transfer payments.

Example expenditures on social securities,subsidies to certain firms or organizations.

4 Net Exports:-

It refers to the country's total value of goods and services that a country imports which is deducted from the value of a country's total exports.

Example natural gas, agricultural products etc.

Rahul Sunny answered 2 years ago

Economic Growth 1. Define GDP 2. List the four components, and give an example of each

Economic Growth 1. Define GDP 2. List the four components, and give an example of each C I G (X-M) 3. Identify what is not included in GDP 4. What's the difference between nominal and real GDP? 5. Which is used to best measure an economy, GDP or GDP per capita. Explain why.

List and briefly describe the four spending components of GDP.

List and give a real life example of each of the four types of market failure...

List and give a real life example of each of the four types of market failure (i.e. the reasons that we need government intervention). Public Goods Externalities Market power (monopolies) Inequities

There are FOUR main components of GDP. Explain the components.

list and discuss in detail the components of GDP in general

What are the four spending components of GDP? Include examples.

1. Answer the following questions about components of demand in GDP: a. List the components of...

1. Answer the following questions about components of demand in GDP: a. List the components of demand from the most important to the least important. b. What component of demand fluctuates the most? c. Why does the government share of demand appear (perhaps) surprisingly small?

what the most recent estimate for real GDP and list each of its components: C (Personal...

what the most recent estimate for real GDP and list each of its components: C (Personal consumption expenditures) =________________, I (Gross private domestic investment)=_________________, G (government consumption expenditures and gross investment)=_____________, NX (Net exports of goods and services)=______________. what is happening in the US right now. Why does consumer spending tend to be considered a stable portion of GDP, when compared to investment spending?

What are the four components of Gross Domestic Product (GDP)? Describe each component and provide examples...

What are the four components of Gross Domestic Product (GDP)? Describe each component and provide examples of goods or services for each component.

list and define 3 stages of prevention and give an example of each

Question