What Are the Components of the National Spending Approach to Calculating

question 23

Multiple Choice

What are the components of the National Spending Approach to calculating GDP?

• A) consumption expenditures, transfer payments, and government investment
• B) private investment, sale of new and used goods, net exports, and transfer payments
• C) consumption goods and services, investment goods, government purchases, and net exports
• D) wages, rent, interest, and profit

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Definitions:

Equilibrium Price

The price at which the quantity of a product offered for sale by sellers equals the quantity of the product that buyers are willing to buy, causing market stability.

Quantity Demanded

The overall volume of a product or service that consumers are eager and equipped to acquire at an established price point.

Quantity Supplied

The entirety of a product or service that sellers are capable and willing to offer at a specified price point over a determined period.

Demand for Tickets

The desire and willingness of consumers to purchase tickets for events, often influenced by factors like price, availability, and interest in the event.