Question

The approach to measuring GDP that adds together compensation to employees, rents, interest income, dividends, undistributed corporate profits, proprietors' income, indirect business taxes, the consumption of fixed capital, and net foreign factor income earned in the United States is the:

Answer 1

Income approach

Step-by-step explanation:

This approach of calculating GDP is called income approach. In income approach of GDP calculation we add compensation to employees, rents, interest income, dividends, undistributed corporate profits, proprietors' income, indirect business taxes, the consumption of fixed capital, and net foreign factor income earned.