Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 35

In discussing the recovery from the Great Recession, several economists stated they were in favor of greater government involvement in the economy because government constitutes one of the components of GDP. Yet the government does not produce many tangible goods. What approach to calculating GDP were these economists referring to?
A) Absorption approach
B) Expenditures approach
C) Income approach
D) Accounting approach