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How does the expenditure approach calculate GDP? A. It adds up all the incomes in the economy. B. It adds up the value of four groups of final goods and services. C. It adds up the value of
business goods and services. D. It adds up the value of consumer goods and services.
How does the expenditure approach calculate GDP? A. It adds up all the incomes in the economy.The expenditure approach involves counting expenditures on goods and services by different groups in the economy. [ The four main components are consumption expenditures by households (C), gross private investment spending principally by firms (I), government purchases of goods and services (G), and net
exports (exports minus imports EX - IM). Here is an equation that sums it up: GDP = C + I + G + (EX - IM) ]
Expert answered|Marvel2|Points 1140|
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Asked 8/26/2013 2:49:58 PM
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Updated 8/20/2013 1:17:20 PM
1 Answer/Comment
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Updated 8/20/2013 1:04:32 PM
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