According to the income approach to GDP, the largest percentage of GDP comes from:
A) indirect business taxes
B) firm profits
C) compensation to employees
D) depreciation of fixed capital
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

The income approach to GDP calculates GDP by adding up all the income earned by households and businesses. Compensation to employees, which includes wages, salaries, and benefits, makes up the largest percentage of this income, accounting for around 50-60% of GDP.

According to the Income Approach to GDP, the Largest Percentage