The four components of GDP are:

Question

Quizplus · Accepted Answer

The four components of GDP are consumption (C), investment (I), government purchases (G) and net exports (NX). Consumption refers to the spending of households on goods and services, investment refers to spending by businesses on capital goods, government purchases refer to spending by the government on goods and services, and net exports refer to the difference between exports (goods and services sold to other countries) and imports (goods and services purchased from other countries). Therefore, choice D is the correct answer.

The Four Components of GDP Are