The expenditures or output approach to GDP measures it by summing up:
A) Compensation of employees, rents, interest, dividends, undistributed corporate profits, proprietors' income, indirect business taxes paid, consumption of fixed capital, and net foreign factor income earned in the United States
B) Compensation of employees, rents, interest, dividends, corporate profits, proprietors' income, and indirect business taxes, and subtracting the consumption of fixed capital
C) The total spending for consumption, investment, net exports, and government purchases
D) The total spending for consumption and government purchases, but subtracting public and private transfer payments

Question

Quizplus · Accepted Answer

The expenditures or output approach to GDP measures the total spending for consumption, investment, net exports, and government purchases. This includes consumer spending on goods and services, investment in machinery and equipment, government spending on goods and services, and net exports (exports minus imports).

The Expenditures or Output Approach to GDP Measures It by Summing