Categorize each statements as a component of Gross Domestic Product (GDP) : consumption, investment, government, or net exports. If it is not included in GDP, leave it unplaced. Consumption Investment Goverment Net exports Answer Bank

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Briana Figueroa

Business

13 January, 15:53

Categorize each statements as a component of Gross Domestic Product (GDP) : consumption, investment, government, or net exports. If it is not included in GDP, leave it unplaced. Consumption Investment Goverment Net exports Answer Bank

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Renee Cardenas · Answer 1

'Government Expenditure' not 'Government' is a component of GD[

Explanation:

GDP is the total value of goods & services produced in an economy during an year.

As per Expenditure method:

It is calculated as 'expenditure' done by all sectors of economy as "one person expenditure is other person income". 4 sectors are : households, firms, government, rest of the world. Their respective demand expenditures are : Private Final Consumption Expenditure, Government Final Consumption Expenditure, Investment (Gross domestic Capital Formation), Net Exports.