In the national income accounts, consumption expenditures include all of the following except household purchases of: A) durable goods. B) nondurable goods. C) new residential housing. D) services.

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Business

Ty Mcmillan

14 September, 14:56

In the national income accounts, consumption expenditures include all of the following except household purchases of: A) durable goods. B) nondurable goods. C) new residential housing. D) services.

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Answers (1)

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Koen French · Answer 1

The correct answer is letter "C": new residential housing.

Explanation:

National Income Accounting is an economic concept that describes a country's method of gathering data and assessing aggregate economic activity over a given time term. Much the same as a normal business needs to know its performance over a given period, a country needs to know how its economy performs so it can make changes that are required.

The National Income Accounts considers the Gross Domestic Product (GDP) as the main metric to determine economic growth. The consumer consumption factor includes the purchase of durable and nondurable goods and services. Residential housing is considered in the private investing factor of GDP.