To calculate GDP by the expenditure method,one must add
A)wages,rents,interest,and profits.
B)consumption spending,investment spending,government purchases,and net exports.
C)consumption spending,investment spending,government purchases,and exports.
D)labor,natural resources,entrepreneurship,and capital.

Question

Quizplus · Accepted Answer

The expenditure method of calculating GDP involves adding up the four components of expenditures: consumption spending (C), investment spending (I), government purchases (G), and net exports (NX). Option B includes all four of these components, making it the correct choice. Option A relates to the income method of calculating GDP, while option C includes exports instead of net exports. Option D lists the factors of production, which are not directly related to calculating GDP by the expenditure method.

To Calculate GDP by the Expenditure Method,one Must Add