Real GDP is composed of
A) consumption spending, investment spending, government purchases and transfer payments, and net exports.
B) consumption spending, investment spending, government purchases, net exports, minus depreciation.
C) consumption spending, investment spending, government purchases, and net exports.
D) consumption spending, savings, government purchases, and net exports.

Question

Quizplus · Accepted Answer

Real GDP is composed of consumption spending, investment spending, government purchases, and net exports. Transfer payments and depreciation are not included in the calculation of real GDP. Savings are not directly included as they are part of investment spending.

Real GDP Is Composed of