Using the expenditure method to estimate GDP, we would include:
A) consumption, investment, government purchases, and net exports.
B) consumption, government revenues, durable goods, and net exports.
C) consumption, investment, government purchases, and exports.
D) consumption, investment, government purchases, and imports.

Question

Quizplus · Accepted Answer

The expenditure method calculates GDP as the sum of all spending on final goods and services within a country's borders. This includes consumption, investment, government purchases, and net exports (exports minus imports). Therefore, choice A includes all the correct categories for calculating GDP using the expenditure method.

Using the Expenditure Method to Estimate GDP, We Would Include