Which One of the Following Would Be Included in the Calculation

question 91

Multiple Choice

Which one of the following would be included in the calculation of GDP by the expenditure approach?

• A)the purchase of 20 shares of a new issue of IBM stock
• B)the purchase of an original eighteenth century work of art
• C)the value of your brother's services when he mows the lawn for the family
• D)the cost of adding a new kitchen to your house
• E)the income you pay to your gardener

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Definitions:

Borrows Funds

The act of obtaining a certain amount of money from another party, usually financial institutions, under the condition of returning it in the future, often with interest.

Current Expenditures

Expenses a company or government incurs through its daily operations that are not capitalized or reported as investments.

Future Taxes

Taxes that are expected to be imposed or increased in the future, impacting current financial planning and decision-making.

Personal Income Tax

A tax levied on individuals' earnings from wages, investments, and other sources.