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The Total Economic Activity in a Nation Is an Important

Question 28

Multiple Choice

The total economic activity in a nation is an important measure. There are three approaches that economists use to measure key indicators. Which is a method that economists do NOT use to measure economic activity?


A) the accounting approach, using the idea that total private sales have to equal total private production
B) the income approach measuring income received by factors of production
C) the expenditure approach, using the idea that the total economic activity is equal to the combined purchases of the various sectors
D) the product approach, which measures GDP from a production standpoint

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