Which Approach Measures GDP by Adding Together Consumption, Investment, Government

question 209

Multiple Choice

Which approach measures GDP by adding together consumption, investment, government purchases, and net exports?

• A) the national spending approach
• B) the factor income approach
• C) the product approach
• D) the value-added approach

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Definitions:

Acquiring Asset

This term involves obtaining control of another company's asset through purchase or merger, enhancing the buyer's resources and capabilities.

Rate Of Return

A financial metric used to measure the amount of return on an investment relative to the investment's cost.

Total Assets

The sum of all current and non-current assets owned by a company, showing the total value of what a company owns or controls.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.