Question

How does an economist calculate GDP for one year using the expenditure approach?

A. add together all the amounts spent on final goods and services
B.add up all the incomes received
C.add the amounts spent on goods and services to the incomes received
D.subtract the amounts received as income from the goods and services

Answer 1

Economists have two methods of calculating GDP, the Expenditure approach and the Income approach. In calculating using the expenditure approach, economists add the market value of all domestic expenditures on "final goods" used within one year. (Final goods will not be resold or used to produce something new) The goods are broken into four categories: net exports, government expenditures, investment and consumption expenditures.

Answer 2

sorry im not supposed to give direct answers

Answer 3

did you figure it out?

Answer 4

Yeah thank you.

Answer 5

your welcome