Question

Describe the major components of GDP from the perspective of national spending?

Answer 1

Major components of the GDP from the perspective of national spending is consumption, government spending, investment and net exports,

• consumptions : Consumptions in the market is the amount which the consumers spend for consuming goods in the market. It can be for various reasons.
• Government spending is spending in the economy done by the government it can be for defence, infrastructure etc.
• investmetn is done for increasing the future consumption and capital generation in the market.
• Net export is total export of the nation subtracted by the imports .