The expenditure approach for the calculation of GDP includes spending on:

Question

Quizplus · Accepted Answer

The expenditure approach for the calculation of GDP includes the following spending: consumption (C), gross private domestic investment (I), government spending for goods and services (G), and net exports (NX). Therefore, option C, which includes all of these factors, is the correct answer. Option B is incorrect because it does not include net exports (NX), and option D is incorrect because it has "net" private domestic investment (I) instead of "gross" private domestic investment (I). Option E is incorrect because it mistakenly includes transfer payments as government spending, which is not the case.

The Expenditure Approach for the Calculation of GDP Includes Spending