Question

Gross Domestic Product is equivalent to the sum of: a Consumer spending, consumption of fixed capital, government purchases and exports b Consumer spending, investment spending, government purchases, and exports c Consumer spending, inventory spending, government purchases and net exports d Consumer spending, investment spending, government purchases and net exports e Consumer spending, investment spending, government purchases, exports, and imports

Answer 1

Answer:

d Consumer spending, investment spending, government purchases and net exports

Explanation:

The formula to compute the gross domestic product is shown below:

= Consumption spending + Investment spending + Government purchase + Net exports

where,

Net exports = Exports - imports

It is a combination of Consumer spending, investment spending, government purchases ,and net exports

Therefore, the most appropriate option is d.