In a Closed Economy,which of the Following Components of GDP

question 190

Multiple Choice

In a closed economy,which of the following components of GDP is not included?

• A)investment
• B)government spending
• C)net exports
• D)consumption

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Definitions:

Consumer Price Index

An index that calculates the overall average price of a range of consumer goods and services, which includes transportation, food, and healthcare provisions.

Overstate

To overstate means to describe or value something in a way that is excessively high or inflated beyond its true worth.

Inflation

How quickly the average price level of goods and services escalates, resulting in reduced purchasing ability.

Cost-push Inflation

A type of inflation caused by an increase in the cost of production inputs, leading to a decrease in aggregate supply in the economy.