In comparing the magnitudes of the components of GDP according to the expenditure approach, we see that in the United States
A)investment, government expenditure on goods and services, and consumption expenditure are all about the same size.
B)investment is less than government expenditure on goods and services.
C)investment is much larger than government expenditure on goods and services.
D)government expenditure on goods and services is the largest category.
E)investment is the largest category.

Question

Quizplus · Accepted Answer

In the United States, consumption expenditure is the largest component of GDP, followed by government expenditure on goods and services. Investment is typically smaller than government expenditure.

In Comparing the Magnitudes of the Components of GDP According