If we add up the consumer spending on goods and services, investment spending, government purchases of goods and services, and the value of exports, then subtract the value of imports, we have measured the nation's:
A) disposable income.
B) gross domestic product.
C) trade deficit.
D) budget deficit.

Question

Quizplus · Accepted Answer

Adding up consumer spending, investment spending, government purchases of goods and services, and the value of exports while subtracting imports is the formula for calculating Gross Domestic Product (GDP). Therefore, the correct answer is B. The other options do not reflect this calculation.

If We Add Up the Consumer Spending on Goods and Services