Which approach measures GDP by adding together wages, rent, interest, and profit earnings?
A) the national spending approach
B) the factor income approach
C) the product approach
D) the value-added approach

Question

Quizplus · Accepted Answer

The factor income approach measures GDP by adding together the incomes earned by households, which are comprised of wages, rent, interest, and profit earnings. This approach is also sometimes referred to as the income approach.

Which Approach Measures GDP by Adding Together Wages, Rent, Interest