The Expenditure Approach Measures GDP by Adding

question 7

Multiple Choice

The expenditure approach measures GDP by adding

• A) compensation of employees, rental income, corporate profits, net interest, and proprietors' income.
• B) compensation of employees, rental income, corporate profits, net interest, proprietors' income, subsidies paid by the government, indirect taxes paid, and depreciation.
• C) compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and depreciation and subtracting subsidies paid by the government.
• D) consumption expenditure, gross private domestic investment, net exports of goods and services, and government expenditure on goods and services.

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Definitions:

Trading Range

The spread of prices at which a stock or other security trades over a certain period of time.

Shareholder Wealth

The overall value of an individual's or entity's shares in a company, often measured by stock prices and dividends.

Share Repurchase Agreements

Contracts in which a company agrees to buy back its own shares from shareholders, often to reduce the number of outstanding shares and increase the value of remaining shares.

Tender Offer

A general offer to stockholders to purchase shares at a specified price, usually for the purpose of acquiring a company.