The measurement system used by the U.S. government to estimate national income is
A) the GDP deflator.
B) national income accounting.
C) the sum of financial transactions, transfer payments and secondhand goods.
D) the sum of consumption plus investment expenditures.

Question

Quizplus · Accepted Answer

National income accounting is the system used by the U.S. government to estimate national income. It measures the total value of all goods and services produced in the economy over a period of time (usually a year) by adding up the value of final goods and services produced in the country, plus net income earned from abroad, and subtracting depreciation. The other options (A, C, and D) are components or measures of this system, but do not represent the entire system itself.

The Measurement System Used by the U