The income approach to calculating GDP is
A) the sum of all business income earned.
B) the sum of all consumer income earned.
C) all the spending on goods and services earned by consumer's income.
D) the sum of all incomes earned from production.
E) net of taxes.

Question

Quizplus · Accepted Answer

The income approach to calculating GDP is the sum of all incomes earned from production. This includes wages, salaries, profits, and rents earned by individuals and firms involved in the production of goods and services. It does not include consumer spending or taxes.

The Income Approach to Calculating GDP Is