Which of the Following Expenditure Components of GDP Can Be

question 216

Multiple Choice

Which of the following expenditure components of GDP can be negative or positive?

• A)Consumption expenditure
• B)Investment
• C)Government expenditure on goods and services
• D)Net exports of goods and services
• E)None of the above because expenditure can never be negative.

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Definitions:

Money Supply

The total quantity of money available in the economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Recessionary Gap

This occurs when equilibrium GDP is less than full-employment GDP.

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and in a given time period.

Labor Productivity

Labor productivity measures the output of goods and services produced by labor per unit of time, often assessed to evaluate the efficiency of a workforce.