When Calculating GDP from the Expenditure Side,"actual Consumption Expenditures" Includes

question 78

Multiple Choice

When calculating GDP from the expenditure side,"actual consumption expenditures" includes

• A)the purchase of a new house.
• B)American tourists travelling to and spending in Canada.
• C)increases in automobile inventories.
• D)the construction of an apartment building.
• E)the monthly rental of an apartment.

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Definitions:

Operating Activities

Activities that constitute the primary or main activities of an entity, such as selling goods and services, which are reflected in the statement of cash flows.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within the year or within the operating cycle of the business, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle.

Cash Flows

The aggregate sum of funds moving in and out of a company, particularly influencing its ability to cover short-term obligations.