Durable goods and non-durable goods comprise approximately what proportion of the supply side of GDP?

• A. 30%
• B. 90%
• C. 70%
• D. 50%

Answer: (C)

Verified step by step guidance

1. Understand that the supply side of GDP refers to the total output of goods and services produced within an economy.
2. Recognize that durable goods are items that last for a long time (e.g., cars, appliances), while non-durable goods are consumed quickly (e.g., food, clothing).
3. Recall that the supply side of GDP is typically divided into goods and services, with goods further split into durable and non-durable goods.
4. Identify from economic data or textbooks that durable and non-durable goods together usually make up a significant portion of the total goods produced, often around 70% of the supply side of GDP.
5. Conclude that the combined proportion of durable and non-durable goods in the supply side of GDP is approximately 70%, based on standard economic statistics.