What are the components of the national spending approach to splitting GDP?
A) consumption expenditures, transfer payments, and government investment
B) private investment, sale of new and used goods, net exports, and transfer payments
C) consumption, investment goods, government purchases, and net exports
D) wages, rent, interest, and profit

Question

Quizplus · Accepted Answer

The national spending approach to splitting GDP includes consumption (C), which refers to the spending of households on goods and services; investment goods (I), which refers to spending on capital goods like machinery, equipment, and buildings by businesses; government purchases (G), which includes government spending on goods and services; and net exports (NX), which is the difference between a country's exports and imports. This formula is known as the GDP equation: GDP = C + I + G + NX.

What Are the Components of the National Spending Approach to Splitting