Which component is NOT included in the calculation of GDP?

The correct answer identifies net personal savings as a component not included in the calculation of Gross Domestic Product (GDP). GDP measures the total economic output of a country and is calculated using the expenditure approach, which sums consumption, investment, government spending, and net exports.

Consumption reflects the total spending by households on goods and services, investment covers business spending on capital goods, and government spending encompasses expenditures by government agencies. However, net personal savings is not directly included in the GDP calculation. Rather, it represents the portion of income that households save after accounting for consumption and taxes. Therefore, net personal savings is a result of economic activity rather than a component of the GDP itself.

Understanding this distinction is crucial for analyzing economic performance, as GDP focuses on actual spending and production rather than on savings, which may influence future investment or consumption.