Which of these groups contribute to total GDP?

Question

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(1 point)
Responses

human records, raw materials, capital goods

human records, raw materials, capital goods

government spending, capital goods, net imports

government spending, capital goods, net imports

net imports, net exports, household spending

net imports, net exports, household spending

net exports, household spending, government spending

Answer 1

To identify which groups contribute to total GDP, we can refer to the expenditure approach of GDP calculation, which includes:

1. Government Spending: Spending by the government on goods and services.
2. Household Spending (Consumption): Expenditures by households on durable goods, nondurable goods, and services.
3. Net Exports: This is calculated as exports minus imports. It can either positively or negatively impact GDP depending on whether exports are greater than imports or vice versa.

Based on these categories, the correct option that captures the components contributing to the total GDP would be:

net exports, household spending, government spending.

This indicates that the option "net exports, household spending, government spending" accurately reflects the contributions to GDP.