Gross Domestic Product Is Equal to the Sum of All

question 125

Multiple Choice

Gross domestic product is equal to the sum of all of the following EXCEPT:

• A)personal consumption expenditures
• B)gross exports D is the answer as net exports are gross exports - imports.Could be confusing to students.Note the next item is identical to this one without the misleading term.
• C)government expenditures
• D)all of the above are included

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Definitions:

Insurance Settlement

The amount paid by an insurance company to a policyholder or claimant as compensation for a covered loss.

Lump Sum

A single payment made at a particular time, as opposed to a series of smaller payments or installments.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Ordinary Annuity

A series of equal payments made at regular intervals, with interest compounded at the end of each period.