Which of the following will be included in the calculation of GDP using the expenditure method?
A) A worker's wage
B) A foreign consumer's purchase of domestic goods
C) A firm's payment of employee bonuses
D) A bank's payment of interest to its customers

Question

Quizplus · Accepted Answer

The expenditure method includes all final purchases of domestically produced goods and services by individuals, businesses, government, and foreigners. Therefore, a foreign consumer's purchase of domestic goods will be included in the calculation of GDP using the expenditure method.

A) A worker's wage is not included in the calculation of GDP using the expenditure method, as it is considered a factor payment and not a final purchase of goods or services.

C) A firm's payment of employee bonuses is also not included in the calculation of GDP using the expenditure method, as it is considered a factor payment and not a final purchase of goods or services.

D) A bank's payment of interest to its customers is also not included in the calculation of GDP using the expenditure method, as it is considered a financial transaction and not a purchase of a final good or service.

Which of the Following Will Be Included in the Calculation