Gross domestic product is defined as:
A) consumer spending + government purchases of goods and services + financial spending + exports - imports.
B) consumer spending + government transfers + investment spending + exports - imports.
C) disposable income + taxes + investment spending + exports + imports.
D) consumer spending + government purchases of goods and services + investment spending + exports - imports.

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is defined as the total value of all final goods and services produced within a country's borders in a given time period. The formula used to calculate GDP is the sum of consumer spending (C), government purchases of goods and services (G), investment spending (I), and net exports (NX) which is exports (X) minus imports (M). Therefore, the correct choice is D, which includes these components: consumer spending, government purchases, investments, and net exports (exports minus imports).

Gross Domestic Product Is Defined As