The income approach measures GDP by summing

Question

Quizplus · Accepted Answer

The income approach measures GDP by summing the incomes paid households for the resources they own, such as wages, salaries, profits, and rent. Option A is incorrect because it represents the expenditure approach, which adds up the total spending on final goods and services. Option B is incorrect because it represents the production approach, which calculates GDP by adding up the total value of all final goods and services produced in a given period. Option C is incorrect because it is too broad and does not relate specifically to GDP measurement.

The Income Approach Measures GDP by Summing