Which of the four spending shares is the largest?
A)Consumption
B)Net exports
C)Government purchases
D)It varies from year to year.
E)Investment

Question

Quizplus · Accepted Answer

Consumption spending is typically the largest share of GDP in most countries. This is because it includes all the spending by households on goods and services, which tends to be much larger than government purchases or investment spending. While net exports can be a large share in some countries heavily reliant on exports, overall consumption spending tends to be the largest spending share in most countries.

Which of the Four Spending Shares Is the Largest