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

Question

Quizplus · Accepted Answer

In Australia, investment typically is larger than government expenditure on goods and services when comparing the components of GDP according to the expenditure approach. This reflects the country's economic structure, where private investment plays a significant role in the economy.

In Comparing the Magnitudes of the Components of GDP According