The four major spending categories of GDP are:
A) consumption, imports, exports, and government purchases.
B) consumption, government purchases, taxes, and investment.
C) consumption, investment, government purchases, and net exports.
D) consumption, investment, government purchases, and stocks.
E) consumption, investment, taxes, and net exports.

Question

Quizplus · Accepted Answer

The four major spending categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (NX). Option C includes all four categories. Option A is incorrect because imports and exports are not categories of spending, but rather components of net exports. Option B is incorrect because taxes are not a category of spending, but rather a source of revenue for the government. Option D is incorrect because stocks are not a category of spending but rather a financial asset. Option E is incorrect because taxes are not a category of spending, and net exports are already included in option C.

The Four Major Spending Categories of GDP Are