List the four components of GDP. Give an example of each

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The GDP or the Gross Domestic Product can be defined as the final market value of all the goods and services produced in a country. The value of goods and services depends upon several factors. The components of the Gross Domestic Product (GDP) can be listed as shown below:

Consumption: This component defines the household consumption of final goods. The goods can be durable or non-durable.

Example: Healthcare, food, and electric items.

Investment: Gross domestic investment is the measure of physical investment. It includes residential investment, non-residential investment, and change in inventories.

Example: tools, machinery, change in inventory.

Government Expenditure: Government expenditure includes local, state, or central government spending for the population’s benefit. It includes expenditure on parks, roads, bridges, etc.

Example: Funds allotted to make a highway across two distant cities.