In the Calculation of GDP by the Expenditure Approach, Exports

question 347

Multiple Choice

In the calculation of GDP by the expenditure approach, exports from the United States must be

• A) added.
• B) subtracted if they are bought by foreign firms for investment purposes.
• C) subtracted because they are included in the consumption of a foreign country.
• D) ignored because they are not bought by U.S. citizens.

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Definitions:

American Federalism

A form of governance where authority is shared between the central (federal) government and several state governments.

Federal Government Power

The authority held by the federal or national government, as distinguished from state or local governments.

1930s

The decade ranging from the year 1930 to 1939, significant for its economic depression globally known as the Great Depression.

McCulloch v. Maryland

A landmark U.S. Supreme Court decision in 1819 that established the principles of national supremacy and implied powers of the federal government.