Which groups contribute to total GDP
There are several groups that contribute to total GDP, including:
1. Households: Consumption spending by households on goods and services makes up a significant portion of total GDP.
2. Businesses: Investment spending by businesses, such as purchasing new equipment and structures, also contributes to total GDP.
3. Government: Government spending on goods and services, as well as investment in infrastructure, also has an impact on total GDP.
4. Foreign trade: Exports and imports of goods and services are also factored into total GDP, as they represent economic activity that contributes to the overall output of a country.
5. Financial institutions: The financial sector, including banks and other financial institutions, play a role in GDP by providing loans and other financial services that support economic activity.