What is the proper formula for computing the GDP using the expenditure approach?
A) S + I + G + X
B) C + I + G + X
C) C + O + G + S
D) 0.5(w + r) + k

Question

Quizplus · Accepted Answer

The proper formula for computing the GDP using the expenditure approach is C + I + G + X, where C represents consumer spending, I represents business investment, G represents government spending, and X represents net exports (exports minus imports). This formula adds up all the final expenditures made within a country over a specific period, giving a measure of the total value of goods and services produced within that country. Choice B correctly reflects this formula.

What Is the Proper Formula for Computing the GDP Using