-The Approach to GDP That Sums Compensation of Employees, Rental

question 197

Multiple Choice

$\begin{array}{|l|l|}\hline \text { Government purchas es of goods and services } & \$ 240 \\\hline \text { Depreciation } & 240 \\\hline \text { Gros private domestic investment } & 400 \\\hline \text { Personal income taxes } & 140 \\\hline \text { Net taxes } & 120 \\\hline \text { Net exports of goods and services } & 80 \\\hline \text { Personal consumption expenditures } & 640 \\\hline \text { Net interest } & 100 \\\hline\end{array}$
-The approach to GDP that sums compensation of employees, rental income, corporate profits, net interest, proprietors? income, depreciation, and indirect taxes and subtracts subsidies is the

• A) expenditure approach.
• B) added cost approach.
• C) income approach.
• D) opportunity cost approach.

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