All of the following factors are components of real GDP, except
(a) government expenditures.
(b) net exports.
(c) consumption of final goods.
(d) secondhand sales.
Consumption function shows the direct relationship between two variables. It shows that disposable income is positively related to consumption. It has an upward sloping consumption curve.
Answer and Explanation:
- The answer to this question is (d) secondhand sales.
This option is correct because the Gross domestic product is the market value of final goods which is produced within the nation during a given time period. The consumption, investment, government expenditure and net exports are the component of GDP. GDP does not include the value of secondhand goods.
- GDP= Consumption + Investment + Government expenditure + Net exports
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from Economics 102: MacroeconomicsChapter 4 / Lesson 3