Questions: To calculate GDP by the expenditure method one must add consumption spending, investment spending, government purchases, and net exports.

To calculate GDP by the expenditure method one must add consumption spending, investment spending, government purchases, and net exports.
Transcript text: To calculate GDP by the expenditure method one must add consumption spending, investment spending, government purchases, and net exports.
failed

Solution

failed
failed

The answer is D: consumption spending, investment spending, government purchases, and net exports.

Explanation for each option:

A. Wages, rents, interest, and profits - This option describes the income approach to calculating GDP, not the expenditure method. The income approach sums up all the incomes earned in the production of goods and services, including wages, rents, interest, and profits.

B. Consumption spending, investment spending, government purchases, and exports - This option is close but incorrect because it does not account for imports. In the expenditure method, net exports (exports minus imports) are considered, not just exports.

C. Labor, natural resources, entrepreneurship, and capital - This option refers to the factors of production, which are inputs used to produce goods and services, not components of GDP calculation by the expenditure method.

D. Consumption spending, investment spending, government purchases, and net exports - This is the correct answer. The expenditure method calculates GDP by summing up consumption spending, investment spending, government purchases, and net exports (exports minus imports). This method reflects the total spending on a country's final goods and services in a given period.

Was this solution helpful?
failed
Unhelpful
failed
Helpful

Questions asked by other users

failedAnswered
The equation is now in standard form, f(x)=a(x-h)^2+k. Use the equation in standard form to determine the vertex (h, k). Find the axis of symmetry x=h. Finally, determine the exact values of the x-intercepts. The x-intercepts occur where the function is zero. Rewrite the equation, setting the function equal to zero. Solve for x. Write the x-intercepts as ordered pairs.
failedAnswered
Why is grafting sometimes used in asexual reproduction of plants? to make sure that the plant is not an exact genetic copy of the parent plant to make it harder to grow a new plant to make it take a lot longer and become more expensive to combine the desirable characteristics of two or more plants
failedAnswered
Based on what you have seen, which is the best definition for an acid? a) Acids split into two molecules in aqueous solution b) Acids remove a proton from each water molecule c) Acids donate protons in aqueous solution d) Acids accept protons from water molecules
failedAnswered
Simplify. Express your answer as a single term using exponents. 796^90 cdot 796^98
failedAnswered
As part of a college literature course, students must select three classic works of literature from the provided list and complete critical book reviews for each selected work. Write a short description of the processes that can be used to generate a simple random sample of three books. Obtain a simple random sample of size 3 from this list. Click the icon to view the classic works list. Which of the following would produce a simple random sample? Select all that apply. A. List each book on a separate piece of paper, place them all in a hat, and pick three. B. Ask someone their opinion on which three books are best, and select those three. C. List the names in alphabetical order and take the first three on the list. D. Number the books from 1 to 9 and use a random number table to produce 3 different one digit numbers corresponding to the books selected.