Question

Question

Which of these groups contribute to total GDP?

(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 determine which group contributes to total GDP, we can refer to the components of GDP, which are typically represented by the equation:

\[ \text{GDP} = C + I + G + (X - M) \]

Where:

• \( C \) = Consumer spending (household spending)
• \( I \) = Investment (including capital goods)
• \( G \) = Government spending
• \( X \) = Exports
• \( M \) = Imports

Based on this equation, the valid components that contribute to total GDP would include:

• Household spending (C)
• Government spending (G)
• Net exports (which is exports minus imports, represented as \( (X - M) \))

From the responses provided, the correct answer that directly includes these components is:

net exports, household spending, government spending

This captures components of GDP as defined by the standard formula.