Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 10, Problem 7MCQ
To determine
The component which makes up the largest percentage of GDP.
Expert Solution & Answer
Explanation of Solution
GDP is the value of final goods and services produced in a nation in a given financial year. Consumer spending shares the largest percentage of GDP in aggregate spending. According to the expenditure method of calculating GDP, GDP in an economy is the sum of consumer spending (C), investment spending (I), government spending (G), and net export (X − M).
GDP = C + I + G + X − M
Thus, option “a” is correct.
Chapter 10 Solutions
Krugman's Economics For The Ap® Course
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