1. 3. ACTIVITY 1: Components of GDP Which component of GDP would each of these fit into? 4. The four components of gross domestic product are personal consumption, business investment, government spending, and net exports. The only exception is the shadow or black economy. _____ Investment _____ A business purchases computer software and a PC 3. Some economists have suggested an alternative approach to measure GDP as Sum of Expenditure. Government spending A local library purchases new audio books 4. Lei 1 Sabrina Lei Mr. Prospero CIA4U1 27 October 2020 WHAT’S IN GDP? STUDENT HANDOUT Joshua Ballard ACTIVITY 1: Components of GDP Which component of GDP would each of these fit into? 2. _____ A mechanic fixes a transmission. Net Exports (X – M)! As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports). _____ A local library purchases new audio books. _____ A retailer purchases tennis shoes from a Chinese manufacturer, then sells them. 4. c.prices based on the assumption that producers make no profits. That tells you what a country is good at producing. _____ Government spending _____ A local library purchases new audio books 4. Gross Domestic Product (GDP) is the monetary value, in local currency, of all final economic goods and services produced in a … 1. _____ A retailer purchases tennis shoes from a Chinese manufacturer, then sells them. Private Consumption Expenditure (C) 2. _____ Consumption _____ Mechanic fixes a transmission 2. Government Purchases of Goods and Services (G) 4. Gross domestic product adds together many different kinds of goods and services into a single measure of the value of economic activity. A. _____ A business purchases computer software and a PC. We break down the GDP formula into steps in this guide. ECONOMICS GDP Worksheet Name: WHAT’S IN GDP? GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X – M): [latex]Y = C + I + G + (X-M)[/latex] GDP is the country's total economic output for each year.It's equivalent to what is being spent in that economy. 1. Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. _____ A local library purchases new audio books. Components of GDP: Fill in the blank with the component of GDP each of these items would fit into. a) Air quality improves significantly throughout the United States, but there are no effects on aggregate production or on market prices of final goods and services. Q. The four major components that go into the calculation of the U.S. GDP, as used by the Bureau of Economic Analysis, U.S. Department of Commerce are: Components of GDP. 3. _____ A mechanic fixes a transmission. The total dollar value of all final goods and services produced within the country’s border in a given year. The four major components. Investment Expenditure (I) 3. ADVERTISEMENTS: Four major components of GDP are: 1. A. Investment A business purchases computer software and a PC 3. _____ A business purchases computer software and a PC. WHAT’S IN GDP? To do this, GDP makes use of a.market prices. b.statistical estimates of the value of goods and services to consumers. Consumption Mechanic fixes a transmission 2. Components of GDP: Fill in the blank with the component of GDP each of these items would fit into. 1. Net exports or imports A retailer purchases tennis shoes … The GDP Formula consists of consumption, government spending, investments, and net exports. 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