Which of the following correctly lists what is included in the consumption compo
ID: 1146643 • Letter: W
Question
Which of the following correctly lists what is included in the consumption component of GDP?
household purchases of services and household purchases of nondurable goods but not any household purchases of durable goods
household purchases of nondurable goods and durable goods other than residential construction but not household purchases of services
household purchases of services, nondurable goods, and all durable goods
household purchases of services, nondurable goods, and durable goods other than residential construction
a.household purchases of services and household purchases of nondurable goods but not any household purchases of durable goods
b.household purchases of nondurable goods and durable goods other than residential construction but not household purchases of services
c.household purchases of services, nondurable goods, and all durable goods
d.household purchases of services, nondurable goods, and durable goods other than residential construction
Explanation / Answer
Correct option is (d).
Personal consumption expenditure includes services, non- durable goods and durable goods excluding residential construction (which is included as component of Investment as Residential Investment demand).
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