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  3. which of the following statements regarding the components of gdp...

Question: which of the following statements regarding the components of gdp...

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  1. Which of the following statements regarding the components of GDP is correct? Select one answer and give explanations as to why each is true or false

    1. a) Household appliances can be reused and last for several years, so are counted as investment in the national accounts.

    2. b) Government transfers such as benefits and pensions are not counted as government spending in the national accounts.

    3. c) A reduction in remittances paid to domestic residents by relatives living abroad will reduce GDP.

    4. d) Investment is typically less volatile than consumption and government spending because firms smooth their investment spending.

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