Accounts-Financial-Instruments-GDP-v2 by ClassOf1

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									              Sub: Economics                                                            Topic: Financial Instruments


              Question:

              Explanation about the terms used in GDP.

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              Explain the Concept of Gross Domestic Product GDP?

              Role for everyone in GDP= C+I+G+X

              C is consumption

              I is investment

              G is government

              X is export

              Each one give explanation


              Solution:
              GDP = C+ I + G + (X-M)

              Consumption expenditure ( C) :

              Consumption expenditures are the expenditures by the household sector on final goods and
              services undertaken in a given time period. About two third of the aggregate expenditure
              constitute the aggregate expenditure. This term covers all expenditures by households on
              durable goods (like automobiles, video recorders, refrigerators etc), non durable consumer
              goods (bread, milk, toothpaste,
								
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