Describe the various components of GDP. What are the relative sizes of these components for the U.S. economy?

Question

Quizplus · Accepted Answer

The Answer is GDP is composed of four components. These components are consumption by the public (C); gross private domestic investment (I); government spending on goods and services (G); and net exports [exports (X) minus imports (M)]. For the U.S., public consumption is approximately 68 percent of GDP. Investment and government spending accounted for approximately 19 percent and 17 percent of GDP, respectively. Finally, exports minus imports account for a negative 4 percent of real GDP indicating that the U.S. imported more goods and services than it exported.

Describe the Various Components of GDP