Question

What items are counted as part of GDP?

1) Consumption
2) Investment
3) Government spending
4) Net exports

Answer 1

The items that are counted as part of GDP include consumption, investment, government spending on goods and services, and net exports.

Step-by-step explanation:

Gross Domestic Product (GDP) measures the total value of goods and services produced in a country during a specified time period. The items that are counted as part of GDP are:

1. Consumption: This includes spending by households on goods and services, such as food, clothing, and healthcare.
2. Investment: This refers to spending by businesses on capital goods, like machinery and equipment, as well as changes in inventories.
3. Government spending on goods and services: This includes spending by the government on public goods, such as infrastructure, education, and defense.
4. Net exports: This is the difference between exports (goods and services sold to other countries) and imports (goods and services purchased from other countries).