GDP Can Be Computed as the Sum of

question 266

Multiple Choice

GDP can be computed as the sum of

• A) all sales that have taken place in an economy over a period of time.
• B) the total expenditures of consumers and business over a period of time.
• C) the total expenditures of consumption, investment, and government expenditure on goods and services over a period of time.
• D) the total expenditures of consumption, investment, government expenditure on goods and services, and net exports over a period of time.

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Definitions:

Investee Company

A company in which another entity has an ownership interest, signifying a partial or full influence over the company despite not having full control.

Stock

Equity securities that represent ownership interest in a company, giving shareholders a claim on part of the company's assets and earnings.

Equity Method

An accounting technique used by a company to record its investment in another company based on the change in net assets of the investee.

Vapor Company

A term sometimes used to describe a company that exists in name only and has no actual business operations or significant assets; often associated with speculative investments or fraud.