The four components of gross domestic product are personal consumption, business investment, government spending and net exports. That's because GDP is the country's total economic output for each year. It's equivalent to what is being spent in that economy.
Accordingly, what are the five components of GDP?
The five main components of the GDP are: (private) consumption, fixed investment, change in inventories, government purchases (i.e. government consumption), and net exports. Traditionally, the U.S. economy's average growth rate has been between 2.5% and 3.0%.
What is and what isn t included in GDP?
Only goods and services produced domestically are included within the GDP. That means that goods produced by Americans outside the U.S. will not be counted as part of the GDP. When a singer from the United States holds a concert abroad, this isn't counted. That means that goods produced illegally are not counted.