Which equation summarizes the expenditures approach to measuring GDP?
A) Y = C + S
B) total spending = total income
C) GDP = C + I + G + (X - M)
D) GDP = net domestic product + depreciation

Question

Quizplus · Accepted Answer

The expenditures approach to measuring GDP sums up four components: consumption (C), investment (I), government spending (G), and net exports (X - M). Thus, the equation that summarizes this approach is GDP = C + I + G + (X - M).

Which Equation Summarizes the Expenditures Approach to Measuring GDP