question archive Which of the following answer choices best describes a consumption expenditure category in the national income accounting? A) Consumer durable goods, consumer nondurable goods, and services B) Consumer durable goods and consumer nondurable goods, but not services C) Changes in business inventories D) Both new and used consumer goods
Which of the following answer choices best describes a consumption expenditure category in the national income accounting? A) Consumer durable goods, consumer nondurable goods, and services B) Consumer durable goods and consumer nondurable goods, but not services C) Changes in business inventories D) Both new and used consumer goods
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Which of the following answer choices best describes a consumption expenditure category in the national income accounting?
A) Consumer durable goods, consumer nondurable goods, and services
B) Consumer durable goods and consumer nondurable goods, but not services
C) Changes in business inventories
D) Both new and used consumer goods
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Answer;
Option A is the correct answer.
Gross domestic product(GDP) is the money value of all final goods and services produced by a country during an economic year.
GDP=C+I+G+(X-M)
Where;
C=Consumption expenditure,
I=Investment expenditure
G=Government expenditure and
X-M= Net exports
Consumer spending is the total spent on final goods and serviceds by individuals and households. It include all private purchases of durable goods, nondurable goods and services.
