Please identify and describe thefour components of GDP Solution COMPONENTS OF GD
ID: 1248649 • Letter: P
Question
Please identify and describe thefour components of GDP
Explanation / Answer
COMPONENTS OF GDP I. Personal consumption a) Durables --> Durable goods, such as autos (3.6%) andfurniture (3%) is the smallest, at only 8% of GDP. b) Nondurables --> Non-durable goods are 20% of GDP. The threelargest components are food (10%), clothing (2.7%) and fuel(2.4%). c) Services --> More than 40% of GDP are services. The twolargest components are real estate (10%) and health care (12%). II. Private investment a) Nonresidential b) Structures c) Producers' durables d) Residential III. Exports & Imports a) Goods b) Services IV. Government expenditures a) Federal -- i. Defense and ii. Nondefense b) State and local