Chapter 13, Problem 6AA

To determine

To choose: The term that best completes the given sentence.

Answer to Problem 6AA

The correct answer is category.

Explanation of Solution

Personal consumption, business investment, government spending, and net exports are the four elements of the gross domestic product. It tells what good a country produces. For each year GDP is the total economic production of the country. It's similar to what's spent in that market.

Consumer sector or consumption category lists all spending expenditure irrespective of whether the expenditure is on domestic or foreign products and services, and in the category of net exports the sale of foreign goods is compensated for.

Economics Concept Introduction

Introduction: GDP is important as it provides information on the scale of an economy and how it performs. True GDP growth rates are also used as an indicator of the general health of the economy. Generally speaking, an increase in real GDP is seen as a sign that the economy is doing fine.