In the Calculation of GDP by the Expenditure Approach, Exports

question 285

Multiple Choice

In the calculation of GDP by the expenditure approach, exports from the United States must be

• A) subtracted because they are included in the consumption of a foreign country.
• B) ignored because they are not bought by U.S. citizens.
• C) subtracted if they are bought by foreign firms for investment purposes.
• D) added.

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Definitions:

Medical Expense Deduction

A tax deduction for expenses related to the diagnosis, cure, mitigation, treatment, or prevention of disease.

Adjusted Gross Income

Gross income minus adjustments, used to determine taxable income on an individual's tax return.

Health Insurance

Coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Deductible Taxes

Taxes that can be subtracted from gross income to reduce taxable income, potentially lowering the amount of income tax owed.