The Largest Component of GDP in the Expenditure Approach Is

question 155

Multiple Choice

The largest component of GDP in the expenditure approach is

• A) personal consumption expenditures.
• B) gross private domestic investment.
• C) government expenditure on goods and services.
• D) net exports.

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Definitions:

Depreciable Cost

The initial cost of an asset minus its salvage value, which is the amount that can be depreciated over the life of the asset.

Residual Value

The approximated price an asset will bring in at the conclusion of its operational life when it is sold.

Straight-Line Basis

A method of calculating depreciation or amortization that spreads the asset's cost evenly across its useful life.

Accumulated Depreciation

The total amount of an asset's cost that has been expensed over time due to wear and tear, obsolescence, or age.