Calculating GDP by the expenditure approach requires summing the value of
A)all income paid to individuals.
B)all transactions in the economy.
C)all final goods and services produced in the economy.
D)all expenditures by individuals.

Question

Quizplus · Accepted Answer

The expenditure approach to calculating GDP involves summing the value of all final goods and services produced in the economy, including consumption expenditures, investment expenditures, government expenditures, and net exports. This approach focuses on the total spending in the economy as an indicator of economic activity. It does not include all income paid to individuals or all transactions in the economy, as these may include intermediate goods and services that are not included in GDP.

Calculating GDP by the Expenditure Approach Requires Summing the Value