The Income Approach to Measuring GDP

question 125

Multiple Choice

The income approach to measuring GDP:

• A)focuses on how income is spent.
• B)uses the factors payments made by businesses to households to estimate GDP.
• C)adds up all household expenditures to calculate aggregate income and GDP.
• D)ignores how income is earned and focuses instead on how it is used.

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Definitions:

Position Power

The authority and influence possessed by an individual in an organization due to their role or position.

Normative Decision Theory

A theoretical framework for understanding how individuals make decisions based on norms, rules, and procedures within a given context, often focusing on optimal or "rational" decision-making.

Consultative

A style or approach that involves seeking advice or opinions before making decisions.

Subordinates

Individuals who are lower in rank or position in an organizational hierarchy.