The income approach to calculating GDP includes compensation of employees plus
A) corporate profits and rental income.
B) national income and government expenditures.
C) net interest and net exports.
D) rental income and net exports.

Question

Quizplus · Accepted Answer

The income approach to calculating GDP includes compensation of employees, corporate profits, and rental income. This is because it measures the total income earned by individuals and businesses in the economy. National income and government expenditures are not included in the income approach, and net interest and net exports are only included in certain variations of the approach.

The Income Approach to Calculating GDP Includes Compensation of Employees