GDP is the sum of:
A) personal consumption, investment, government purchases of goods and services, exports, and imports.
B) personal consumption, investment, government purchases of goods and services, and net exports.
C) personal consumption, investment, government purchases of goods and services, and net imports.
D) value added, net imports, and government purchases of goods and services.

Question

Quizplus · Accepted Answer

GDP is calculated by adding up the total spending in an economy, which consists of personal consumption (spending by households), investment (spending by businesses on capital goods and construction), government purchases of goods and services, and net exports (exports minus imports). Option B includes all of these components except for net imports, which are already subtracted from the total in the calculation of net exports.

GDP Is the Sum Of