Question

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

Answer 1

The correct answer is B. It adds up the value of our groups of finals goods and services

Answer 2

How does the expenditure approach calculate GDP?

b. It adds up the value of four groups of final goods and services.

The 4 groups are:
1) Consumption
2) Government spending
3) Investments
4) Net Exports