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 ...

The major component of GDP .

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN: 9781337091985

Author: N. Gregory Mankiw

Publisher: Cengage Learning

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Chapter 5, Problem 5CQQ

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The major component of GDP.

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Which of the following are included in GDP, and which are not? The cost of hospital stays The rise in life expectancy over time Child care provided by a licensed day care center Child care provided by a grandmother A used car sale A new car sale The greater variety of cheese available in supermarkets The iron that goes into the steel that goes into a refrigerator bought by a consumer.
Country A has export sales of 20 billion, government purchases of 1,000 billion, business investment is 50 billion, imports are 40 billion, and consumption spending is 2,000 billion. What is the dollar value of GDP?
What are the main components of measuring GDP with what is produced?
How might you measure a green GDP?
What are the two main difficulties that arise in comparing different comparing GDP?
Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?

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