The expenditure approach to measuring GDP
A) adds the dollar value of final goods and services.
B) adds the income received by all factors of production.
C) excludes durable consumer goods since they last more than a year.
D) excludes profits since profits are a cost of production.

Question

Quizplus · Accepted Answer

The expenditure approach adds up the dollar value of all final goods and services, including durable consumer goods that last more than a year. It does not take into account the income received by all factors of production or exclude profits.

The Expenditure Approach to Measuring GDP