The components of GDP using the income method (excluding indirect business taxes and depreciation) are
A) consumption expenditures, investment expenditures, and government expenditures.
B) consumption expenditures, investment expenditures, government expenditures, and net exports.
C) wages and interest.
D) wages, interest, rents, and profits.

Question

Quizplus · Accepted Answer

The components of GDP using the income method (excluding indirect business taxes and depreciation) are composed of wages, interest, rents, and profits. These components represent the income earned by individuals or businesses in the process of producing goods and services, and together they make up the total income or value added generated by the economy. Consumption expenditures, investment expenditures, and government expenditures are components of GDP using the expenditure method. Net exports are also included in this method.

The Components of GDP Using the Income Method (Excluding Indirect