The expenditure components of GDP include all of the following except
A) consumption.
B) investment.
C) government spending on goods and services.
D) the sum of government spending on goods and services, transfer payments, and interest on the national debt.

Question

Quizplus · Accepted Answer

Transfer payments and interest on the national debt are not included in the expenditures approach to calculating GDP, so D is the correct answer. The components included in GDP are consumption, investment, government spending on goods and services, and net exports.

The Expenditure Components of GDP Include All of the Following