The expenditure approach to measuring GDP sums
A) consumption,investment,government purchases,and net exports.
B) sales,revenues,income,and wages.
C) profits,compensation of employees,consumption,and investment.
D) net exports,consumption,wages,and salaries.
E) consumption,interest,net exports,and federal government purchases

Question

Quizplus · Accepted Answer

The expenditure approach to measuring GDP sums up four components: consumption, investment, government purchases, and net exports. Consumption includes purchases made by households, investment includes spending by businesses on capital goods, government purchases include spending by the government on goods and services, and net exports are exports minus imports. Therefore, option A is the correct choice.

The Expenditure Approach to Measuring GDP Sums