Which of the following is included when using the income method to measure GDP?
A) Government purchases of goods and services.
B) Net exports of goods and services.
C) Household consumption expenditures.
D) Gross private domestic investment.
E) Business profits.

Question

Quizplus · Accepted Answer

The income method calculates GDP by adding up all incomes earned in the production of goods and services. Business profits, along with employee compensation, rental income, and indirect taxes less subsidies, are included in the income method. The other choices are included in the expenditure method of calculating GDP.

Which of the Following Is Included When Using the Income