The largest component of spending in GDP is
A)consumption spending.
B)investment spending.
C)government spending.
D)net export spending.

Question

Quizplus · Accepted Answer

Consumption spending refers to the purchase of goods and services by households, which makes up the largest component of spending in GDP. Investment spending includes spending on capital goods such as machinery and buildings. Government spending refers to expenditures on goods and services by the government, while net export spending is the difference between exports and imports.

The Largest Component of Spending in GDP Is