Which one of the following statements about GDP is true?
A) GDP can be calculated using the income approach.
B) The value of household production is excluded from GDP.
C) GDP can be calculated using the expenditures approach.
D) all of the above.

Question

Quizplus · Accepted Answer

All three statements are true. GDP can be calculated using the income approach, which involves adding up all the incomes earned in an economy (like wages, rents, and profits). The value of household production is excluded from GDP because it is not a market transaction. Finally, GDP can also be calculated using the expenditures approach, which involves adding up all the spending on final goods and services in an economy.

Which One of the Following Statements About GDP Is True