Correct Answer: Consumer spending

Solution : The correct answer is (c) Consumer spending.

Consumer spending is one of the components included in the calculation of Gross Domestic Product (GDP). GDP is a measure of the total value of all final goods and services produced within a country's borders during a specific period. It is commonly used as an indicator of a country's economic performance.

The components of GDP include:

a) Consumption spending: This represents the expenditure by households on goods and services, such as food, clothing, housing, healthcare, and entertainment.

b) Investment spending: This includes the spending on business investments, such as purchases of machinery, equipment, and structures, as well as spending on residential construction.

c) Government spending: This refers to the expenditure by the government on goods and services, such as public infrastructure, defense, education, and healthcare.

d) Net exports: This represents the difference between exports and imports. If a country's exports exceed its imports, it contributes positively to GDP, while if imports exceed exports, it has a negative impact on GDP.