The single largest expenditure component in GDP is:

Question

Quizplus · Accepted Answer

Consumption expenditures typically make up the largest component of GDP, accounting for approximately 70% of GDP in the United States. This includes expenditures on goods and services by households, such as food, housing, and healthcare. Private investment expenditures (B) include spending on business equipment, structures, and intellectual property, but make up a smaller proportion of GDP. Net exports (C) are the difference between the value of exports and imports and can be positive or negative, but typically make up a small portion of GDP. Government purchases (D) include spending on goods and services by the government, but also make up a smaller proportion of GDP compared to consumption expenditures.

The Single Largest Expenditure Component in GDP Is