The Sum of the Consumption, Investment, and Net Exports Shares

question 23

Multiple Choice

The sum of the consumption, investment, and net exports shares of GDP is called

• A) the nongovernment share of GDP.
• B) the real-economy share of GDP.
• C) the privately held share of GDP.
• D) None of these

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Definitions:

Accounts Receivable Period

The average number of days that it takes a company to collect payments after a sale has been made, a critical component of managing cash flow.

Accounts Payable Period

The average number of days it takes for a business to pay its suppliers and vendors.

Inventory Period

The average time it takes for a company to convert its inventory into sales or the duration of the inventory cycle.

Inventory Period

The average time it takes for a company to turn its inventory into sales, reflecting the efficiency of inventory management.