Which of the following is true of the expenditure-based method of national accounting?
A) It does not track the purchase of services by households.
B) It does not track the purchase of goods and services by the government.
C) It tracks the purchase of investment goods by firms and households.
D) It only tracks the purchase of goods and services by the government.

Question

Quizplus · Accepted Answer

The expenditure-based method of national accounting tracks the purchase of goods and services by households, investment goods by firms and households, and goods and services by the government. Option A is incorrect as it does track the purchase of services by households. Option B and D are also incorrect as they are opposite to the correct statement.

Which of the Following Is True of the Expenditure-Based Method