Question

The component of GDP called consumption consists of: household spending on durable goods, but not household spending on nondurable goods or on services. household spending on durable and nondurable goods as well as household spending on services. household spending on durable and nondurable goods, but not household spending on services. spending by households and business firms on durable and nondurable goods as well as spending by households and business firms on services.

Answer 1

household spending on durable and non-durable goods as well as household spending on services.

Step-by-step explanation:

The gross domestic product includes he market value of all the final and legal goods and services produced within a country during a certain period or time (usually 1 year).

GDP = C + I + G + X - M

• C = private consumption: is the far the largest component of the GDP, accounting for 70% of the total US GDP. It includes all the goods and services purchased by US households and is divided into 3 categories: durable goods, non-durable goods and services. Services account for the largest percentage of private consumption.
• I = private investment
• G = government spending
• X = exports
• M = imports

Answer 2

household spending on durable and nondurable goods as well as household spending on services

Step-by-step explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP can be calculated using:

1. Expenditure approach

2. The income approach

The expenditure approach = Consumption spending + Investment spending + Government Spending + Net Export

Consumption spending is household spending on durable and nondurable goods as well as household spending on services.

Investment spending is spending by businesses.

Government spending includes spending by government

Net Export is export less import

I hope my answer helps you