GDP: Component Overview
In order to calculate the GDP you must add all of these components:
- Consumer spending: this is the value of the consumption of the goods and services of the country's households; this is the largest part of the GDP
- Government spending: ALL consumptions, investments, and payments made by the government for current use
- Capital spending of businesses: Expenditure on purchases of fixed assets and unsold stock by private businesses
- Net exports: represents the country's balance of trade
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