Total spending in an economy is the sum of
A) durable goods plus nondurable goods plus services.
B) imports minus exports.
C) personal consumption plus gross private investment plus government spending plus net exports.
D) food consumption plus housing expenditures plus business expenditures plus government spending.

Question

Quizplus · Accepted Answer

Total spending in an economy, also known as gross domestic product (GDP), is comprised of personal consumption (durable goods, nondurable goods, and services), gross private investment (business investment in structures, equipment, and software), government spending (federal, state, and local), and net exports (exports minus imports).

Total Spending in an Economy Is the Sum of