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-The Approach to GDP That Sums Compensation of Employees, Rental

Question 145

Multiple Choice

 Government purchas es of goods and services $240 Depreciation 240 Gros private domestic investment 400 Personal income taxes 140 Net taxes 120 Net exports of goods and services 80 Personal consumption expenditures 640 Net interest 100\begin{array}{|l|l|}\hline \text { Government purchas es of goods and services } & \$ 240 \\\hline \text { Depreciation } & 240 \\\hline \text { Gros private domestic investment } & 400 \\\hline \text { Personal income taxes } & 140 \\\hline \text { Net taxes } & 120 \\\hline \text { Net exports of goods and services } & 80 \\\hline \text { Personal consumption expenditures } & 640 \\\hline \text { Net interest } & 100 \\\hline\end{array}
-The approach to GDP that sums compensation of employees, rental income, corporate profits, net interest, proprietors? income, depreciation, and indirect taxes and subtracts subsidies is the


A) expenditure approach.
B) added cost approach.
C) income approach.
D) opportunity cost approach.

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