Which of the following is/are NOT included in the expenditure approach to national income accounting?
A) software
B) taxes
C) defense expenditures
D) All of these answers are correct.
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

Taxes are not included in the expenditure approach because they are not considered as purchases of goods or services. Instead, they are a transfer of income from households and firms to the government. Software and defense expenditures are both included in the expenditure approach as they represent purchases of goods and services.

Which of the Following Is/are NOT Included in the Expenditure