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The table below details the composition of an economy's GDP by spending category. Category Fixed business investment Durable goods Expenditures (billions of dollars) $3,600.00
The table below details the composition of an economy's GDP by spending category. Category Fixed business investment Durable goods Expenditures (billions of dollars) $3,600.00 $2,400.00 Exports $700.00 Federal government purchases $1,600.00 New home construction $1,000.00 Imports Change in inventories Nondurable goods Services $840.00 $-300.00 $4,300.00 $8,450.00 State and local government purchases $2,550.00 Use the information in the table to calculate the following a) Consumption: $ billion b) Investment: $ billion c) Government: $ billion d) Net exports: $ billion e) GDP: $ billion Part 2 (1 point) Think about the different components of GDP and how they change with the business cycle. Which component of consumption fluctuates the most? Choose one: A durable goods B. nondurable goods C. services O D. new home construction See Hint
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