Correct Answer: Government purchases of goods and services

Solution : The correct answer is (b) Government purchases of goods and services

Government purchases of goods and services are considered as a component of GDP. It includes the spending by the government on goods and services such as infrastructure, public administration, defense, and healthcare.

Consumer spending on non-durable goods is also included in the calculation of GDP. It refers to the expenditure by households on goods that are consumed or used up relatively quickly, such as food, clothing, and personal care products.