The Largest Component of Spending in GDP Is

question 246

Multiple Choice

The largest component of spending in GDP is

• A)consumption spending.
• B)investment spending.
• C)government spending.
• D)net export spending.

---

Definitions:

Inverse Demand Function

A mathematical function that expresses price as a function of quantity demanded, illustrating how the price necessary to sell a given quantity changes.

Price

The amount of money required to purchase a good or service, often determined by supply and demand dynamics in the market.

Income

Funds accumulated over time from work or investing efforts, usually received systematically.

Utility Function

A representation in economics of how a consumer ranks different bundles of goods according to their level of satisfaction or happiness.