Which of the following is true regarding the measurement of GDP?
A)Wages and profit income are used in the income approach to GDP.
B)Wages and consumption are used in the expenditure approach to GDP.
C)Consumption and investment are used in the income approach to GDP.
D)Government expenditure is only counted in the income approach to GDP.
E)Investment and wages are expenditures,and are therefore are used in the expenditure approach to GDP.

Question

Quizplus · Accepted Answer

Wages and profit income are two components used in the income approach to measure GDP. The expenditure approach uses consumption, investment, government expenditure, and net exports to measure GDP. Therefore, options B, C, D, and E are incorrect.

Which of the Following Is True Regarding the Measurement of GDP