Final answer:
GDP can be calculated by summing consumption, investment, government expenditure, and net exports, which considers all expenditures on final goods and services within a country, including the trade balance. The correct option is b.
Step-by-step explanation:
GDP, or Gross Domestic Product, can be calculated by summing four main components from the demand side. These are consumer spending (consumption), business spending (investment), government spending on goods and services, and spending on net exports. Thus, the correct answer is consumption, investment, government expenditure, and net exports. This formula accounts for all expenditures on the final goods and services produced within a country in a given period.
It is important to note that net exports represent the difference between a country's exports and imports. If a country exports more than it imports, it has a trade surplus and net exports will be a positive number; conversely, a trade deficit occurs when a country imports more than it exports, making net exports a negative figure. This aspect of the calculation helps to understand the trade balance's impact on a country's economy.