What are the 4 categories of goods and services used to calculate GDP - Gross Domestic Product
Group of answer choices
Consumer, Job Growth, Government, Incentives
Consumer, Business, Government, Net Import/Export
The correct answer is: Consumer, Business, Government, Net Import/Export.
The correct answer is:
Consumer, Business, Government, Net Import/Export
The correct answer is: Consumer, Business, Government, Net Import/Export.
To calculate the GDP, which stands for Gross Domestic Product, we need to consider the four main categories of goods and services.
1. Consumer spending: This category includes all the goods and services purchased by individuals or households. It includes everything from groceries and clothing to healthcare services and entertainment.
2. Business investment: This category includes the spending on capital goods by businesses. It refers to the investments made by companies in machinery, equipment, buildings, and other physical assets used for production.
3. Government spending: This category includes all the goods and services purchased by the government at the federal, state, and local levels. It includes spending on public infrastructure, defense, education, healthcare, and other government programs and services.
4. Net exports: This category represents the difference between a country's total exports and total imports. If a country exports more goods and services than it imports, it has a trade surplus. Conversely, if a country imports more goods and services than it exports, it has a trade deficit.
By considering these four categories and their respective contributions to the economy, economists can calculate the GDP, which is a measure of the total value of all final goods and services produced within a country's borders during a specific period of time.