Certainly! Let's match each component of the gross domestic product (GDP) with its definition step-by-step:
1. The amount households spend on consumer goods and services:
- This refers to the money spent by households on items such as food, clothing, and entertainment.
- The appropriate matching component for this definition is consumption.
2. Investment spending by business on new capital goods:
- This involves businesses spending money on items such as machinery, buildings, and technology that will be used to produce goods and services in the future.
- The appropriate matching component for this definition is investment.
3. Total government spending on goods and services:
- This includes all government expenditures on goods and services that are consumed by the public and used in providing public services.
- The appropriate matching component for this definition is government expenditure.
4. Value of exports minus the value of imports:
- This is the net value of a country's exports subtracting its imports, also known as the trade balance.
- The appropriate matching component for this definition is net exports.
So, the final matches are:
- The amount households spend on consumer goods and services: consumption
- Investment spending by business on new capital goods: investment
- Total government spending on goods and services: government expenditure
- Value of exports minus the value of imports: net exports
