GDP Using the Expenditure Approach Equals the Sum of Personal

question 303

Multiple Choice

GDP using the expenditure approach equals the sum of personal consumption expenditures plus

• A) gross private investment.
• B) gross private investment plus government expenditure on goods and services.
• C) gross private investment plus government expenditure on goods and services minus imports of goods and services.
• D) gross private investment plus government expenditure on goods and services plus net exports of goods and services.

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Definitions:

Predetermined Price

A price agreed upon by all parties in a financial contract or transaction, set before any exchanges are made.

Security

A financial asset signifying either an equity stake in a corporation that's publicly traded (known as stock), a debt investment in a company or government (referred to as a bond), or entitlements to ownership through an option.

Put Option

This is a financial deal that permits the carrier to optionally sell a specified volume of an underlying asset at a designated price within an agreed timeframe, without mandatory action.

Seller

An individual or entity that offers goods or services in exchange for payment or other compensation.