Question

The Gross Domestic Product (GDP), a measure of a nation's economic activity, is calculated by all of the following factors except:

A) consumer spending.
B) investment spending.
C) government purchases
D) industry purchases.
E) net exports.

Answer 1

The Gross Domestic Product does not include 'industry purchases' as a separate factor; it is covered within 'investment spending'.

Step-by-step explanation:

The Gross Domestic Product (GDP), which is a measure of a nation's economic activity, is calculated by including factors such as consumer spending, investment spending, government purchases, and net exports. However, industry purchases are not a separate component used in the calculation of GDP. Instead, industry purchases are reflected in the investment spending category, as businesses acquiring goods and services for production fall under this component.