Which of these is not a component of GDP?
government spending
household consumption
net exports
net imports
D
Jayden opens a savings account with $100.00. His account pays 4% simple interest. How much money will be in his account one year later if he makes no deposits or withdrawals?
$96.00
$100.00
$104.00
$148.00
C
Both are right.
To determine the answer to the first question, you need to understand the components of GDP (Gross Domestic Product). GDP measures the total monetary value of all final goods and services produced in a country within a specific time period. The components of GDP are:
1. Government spending: This includes all expenditures made by the government, such as on infrastructure, defense, public services, and welfare programs.
2. Household consumption: This refers to the total spending by households on goods and services, including items like food, clothing, housing, and transportation.
3. Net exports: Net exports represent the value of exports minus the value of imports. If a country's total exports are greater than its imports, it has a positive net export.
4. Net imports: Net imports represent the value of imports minus the value of exports. If a country's total imports are greater than its exports, it has a negative net export.
Among the given options, the component that is not a part of GDP is "net imports" or option D.
Moving on to the second question, we are given that Jayden opens a savings account with $100.00 and it pays 4% simple interest. To calculate the amount of money in his account after one year with no deposits or withdrawals, we can use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, the principal (initial amount) is $100.00, the rate is 4%, and the time is 1 year.
So, the interest earned will be:
Interest = $100.00 * 0.04 * 1 = $4.00
To find the total money in Jayden's account after one year, we need to add the interest earned to the initial amount:
Total Money = Principal + Interest = $100.00 + $4.00 = $104.00
Therefore, the answer is option C, $104.00.