What is included when using the expenditure method to estimate GDP?
A) Consumption, investment, government purchases, and net exports
B) Consumption, government revenues, durable goods, and net exports
C) Consumption, capital investment, government purchases, and exports
D) Consumption, investment, government purchases, and imports

Question

Quizplus · Accepted Answer

The expenditure method of estimating GDP includes four major components: consumption, investment, government purchases, and net exports (exports minus imports). Therefore, option A is the correct choice as it includes all four components. Options B and C are incorrect as they include either government revenues or capital investment which are not part of the expenditure method. Option D is incorrect as it includes imports instead of exports.

What Is Included When Using the Expenditure Method to Estimate