Final answer:
The student's question addresses the four main components of GDP: consumption, government spending, business investment, and net exports, all of which sum up the total economic activity of a country.
Step-by-step explanation:
The student's question pertains to the components of the Gross Domestic Product (GDP), which comprise consumption, government spending on goods and services, business investment, and net exports. These components represent the total demand from different sectors that contribute to the economic output of a country. Consumption accounts for about two-thirds of GDP and has shown a slight upward trend. Business investment is around 15% of GDP and can fluctuate. Government spending makes up just under 20% and has seen a modest decline. Net exports are calculated by subtracting imports from exports, with a trade surplus existing when exports exceed imports, and a trade deficit occurring when imports exceed exports.
To avoid double counting, GDP only includes the final output of goods and services, excluding intermediate goods and the value of labor in the chain of production. This ensures an accurate measure of a nation's economic activity. By examining how these components adjust as national income changes, we can understand the dynamics of aggregate expenditure and economic growth.