The expenditures or output approach to GDP measures it by summing up
A) compensation of employees, rents, interest, dividends, undistributed corporate proﬁts, proprietors' income, indirect business taxes paid, consumption of ﬁxed capital, and net
Foreign factor income earned in the United States.
B) compensation of employees, rents, interest, dividends, corporate proﬁts, proprietors' income, and indirect business taxes, and subtracting the consumption of ﬁxed capital.
C) the total spending for consumption, investment, net exports, and government purchases.
D) the total spending for consumption and government purchases, but subtracting public and private transfer payments.

Question

Quizplus · Accepted Answer

The expenditures or output approach to GDP measures it by summing up the total spending for consumption, investment, net exports, and government purchases. This approach takes into account all final goods and services produced within a country's borders, regardless of whether they are sold domestically or abroad. It is the most commonly used approach for calculating GDP.

The Expenditures or Output Approach to GDP Measures It by Summing