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

Question

Quizplus · Accepted Answer

In the United States, consumption expenditure is the largest component of GDP, while investment and government expenditure on goods and services are typically similar in size, but both are much smaller than consumption.

In Comparing the Magnitudes of the Components of GDP According