The computation of GDP by adding up all components of national income including wages, interest, rent and profits is
A) the expenditure approach.
B) the income approach.
C) transfer payments.
D) the value of all securities.

Question

Quizplus · Accepted Answer

The computation of GDP by adding up all components of national income including wages, interest, rent and profits is known as the income approach. This is different from the expenditure approach which adds up all final expenditures such as consumer spending, government spending, and investment spending. Transfer payments and the value of all securities are not relevant to the calculation of GDP.

The Computation of GDP by Adding Up All Components of National