GDP can be calculated by summing ________.
A) consumption, investment, government purchases, exports, and imports
B) consumption, investment, government purchases, and net exports
C) consumption, investment, wages, and rents
D) consumption, investment, government purchases, and importsB) consumption, investment, government purchases, and net exports

Respuesta :

GDP can be calculated by summing consumption, investment, government purchases, and net exports. Thus, the correct answer is option B.

What is GDP?

The total monetary or market value of all the finished goods and services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP). It serves as a thorough assessment of the state of the economy in a particular nation because it is a wide indicator of total domestic production.

The total private and public consumption, government expenditures, investments, increases in private inventories, paid-in building expenses, and the foreign balance of trade are all included in the computation of a nation's GDP. (Imports are deducted from the amount while exports are added.)

Therefore consumption, investment, government purchases, and net exports is summed to calculate GDP.

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