The GDP figure by the income approach will be identical to the GDP by the expenditure approach if we add to the Net Domestic income:
A)the capital consumption allowances and the investment income.
B)the capital consumption allowances and the interest payments to the owners of capital.
C)the indirect taxes and the capital consumption allowances.
D)profits of the corporations and the capital consumption allowances.

Question

Quizplus · Accepted Answer

The GDP by the income approach includes net domestic income, indirect taxes, and capital consumption allowances. Adding indirect taxes and capital consumption allowances to net domestic income aligns it with the expenditure approach.

The GDP Figure by the Income Approach Will Be Identical