Question

95.  Chapter TF, Section .23, Problem 084 (ID: 084.23 - TF - MANK08)

Consumption expenditures were previously the largest component of GDP, but with the growth of government and government expenditures, this is no longer true. ​ a. True b. False

Answer 1

Answer: False

Consumption expenditure will be always the largest component of GDP because the government expenditure varies depending on the size and nature of their spending for people. But consumption is like a daily activity where people buy goods and services through out the year as they have to use them for their day to day activities. So consumption expenditure is still and will always be the largest component in GDP.