What is Gross Domestic Product (GDP) comprised of?

Gross Domestic Product (GDP) is a comprehensive measure of a country's economic activity and is defined as the total value of all goods and services produced over a specific time period. The correct answer highlights that GDP is comprised of several key components: consumer spending, government spending, business investments, and net exports.

Consumer spending represents the total amount spent by households on goods and services, which is a significant driver of a nation’s economic health. Government spending includes expenditures for goods and services that government consumes for providing public services and government investment on infrastructure projects. Business investments refer to the spending by businesses on capital goods, which are necessary for producing goods and services. Lastly, net exports account for the value of a country's total exports minus its total imports; this component reflects a country's trade balance and its impact on overall economic activity.

This holistic approach ensures that all facets of an economy are taken into account, making GDP a valuable indicator for assessing economic performance. Other options provided do not encapsulate the complete spectrum of what GDP represents, focusing instead on narrower aspects that do not give a clear picture of total economic output.