PRC-3 · Chapter 13 · Question 4 of 50
Which method of calculating a nation's Gross Domestic Product (GDP) sums up consumption (C), investment (I), government spending (G), and net exports (X-M)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The Expenditure method
Explanation
The expenditure approach measures GDP by totaling all the spending on final goods and services produced within a country (C + I + G + (X-M)).
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