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gdp is composed of four main categories. which of those categories are the primary target of fiscal policy?

Sagot :

Answer: government spending, consumption spending.

Explanation: gdp is composed of consumption spending

The category that is the primary target of fiscal policy is the spending of the government.

What is GDP?

The full form of GDP is the Gross Domestic Product. It is a monetary measurement of all the final goods and services produced in a specific time period by countries, and it is the market value of all the final goods and services.

Personal consumption, business investment, government spending, and net exports are the four main categories of the GDP.

The aggregate of the government spending is the primary target of fiscal policy, as fiscal policy increases in the real GDP.

Therefore, the category that targets the fiscal policy is the government spending.

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