Question

Gross domestic product (GDP) is the market value of all final goods and services produced in a country during a period of time, typically one year. What are the four major components of GDP?

O Investment.
O Money.
O Savings.
O Government spending.
O Tariffs.
O Prices.
O Consumption
O Net exports

Answer 1

The four major components of GDP are Consumption, Investment, Government spending, and Net exports. These components together reflect the total market value of all goods and services produced in a country's economy.

Step-by-step explanation:

The four major components of Gross Domestic Product (GDP) are:

• Consumption: This refers to all private expenditures by households on goods and services.
• Investment: This includes business spending on equipment and structures, residential construction, and changes in business inventories.
• Government spending: This covers government expenditures on goods and services that directly provide benefits to the public.
• Net exports: This is the total value of a country's exports minus its imports.

GDP is an important indicator used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period and is an essential measurement in macroeconomics.