Computation of GDP by the expenditures method would include the purchase of:
A) Fertilizer by a farmer
B) Cement by a construction company
C) Land by the U.S. Department of Interior
D) Government bonds by a commercial bank

Question

Quizplus · Accepted Answer

The expenditures method of GDP includes government spending on goods and services, such as land purchases, but not intermediate goods like fertilizer or cement, nor financial transactions like bonds.

Computation of GDP by the Expenditures Method Would Include the Purchase