The largest component of GDP is
A) consumption expenditure.
B) gross private domestic investment.
C) government spending.
D) net exports.

Question

Quizplus · Accepted Answer

Consumption expenditure, which includes spending by households on goods and services, accounts for the largest component of GDP, typically around 70%. This is because individuals and households make up the majority of economic activity in a country. Gross private domestic investment, government spending, and net exports, while important components of GDP, are typically smaller in comparison.

The Largest Component of GDP Is