GDP can be calculated by adding:
A)consumption, gross investment, government purchases, exports, and imports
B)gross investment, government purchases, consumption, and net exports
C)consumption, net investment, wages, and rents
D)consumption, gross investment, government purchases, and imports
E)consumption, gross investment, government purchases, and exports

Question

Quizplus · Accepted Answer

GDP is calculated by adding up gross investment, government purchases, consumption, and net exports. Option B includes all of these components. Option A includes imports, which are subtracted from GDP in the calculation of net exports. Option C includes wages and rents, which are not direct components of GDP. Option D includes imports, as mentioned above. Option E includes exports, but not net exports which is what is used in the calculation of GDP.

GDP Can Be Calculated by Adding