Question

the gross domestic product of the united states is mostly measured using the expenditure approach. this is calculated by using the following formula: gdp=c + g + i + nx. last year the state increased funding to highway patrols to enforce safety standards for tractor trailers. which component of gdp would this fall under? a net imports b total exports c personal savings d government spending

Explanation:

Step1: Recall GDP formula components

The GDP formula is \( GDP = C + G + I + NX \), where \( G \) is government spending.

Step2: Analyze the scenario

The state's spending on highway patrols for safety enforcement is a government expenditure.

Step3: Match with options

• Option A (Net Imports) relates to \( NX \) (exports - imports), not government spending.
• Option B (Total Exports) is part of \( NX \), not \( G \).
• Option C (Personal Savings) is not a GDP component in the expenditure approach.
• Option D (Government Spending) matches the state's expenditure on patrols.

Answer:

D. Government Spending