BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985

Solutions

Chapter
Section
BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985
Textbook Problem

Which is the largest component of GDP?

a. consumption

b. investment

c. government purchases

d. net exports

To determine

The major component of GDP.

Explanation

The GDP is the summation of the monetary value of all the goods and services produced within the political boundary of a country, within a financial year. The expenditure is a main part of the GDP consideration because all the expenditures turn out to be someone’s income, which can be calculated in the GDP.

Option (a):

The expenditures made for the purpose of consumption of goods and services by the individual or the government is known as the consumption expenditure. It is a major component of expenditure which accounts for 70 percent of the total expenditure of the economy. Thus, it is clear that the correct option is option ‘a’.

Option (b):

The expenditure made for the purpose of investment by the individuals or the government is an important component of the GDP of ...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Describe the three general categories of franchising arrangements.

Foundations of Business (MindTap Course List)

EVALUATING LUMP SUMS AND ANNUITIES Crissie just won the lottery, and she must choose among three award options....

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)