How Does the Expenditures Measure of GDP Differ from the Production

question 61

Multiple Choice

How does the expenditures measure of GDP differ from the production measure?

• A) It doesn't. The final value is the same.
• B) It is lower, because only purchased items are counted.
• C) It is higher due to the higher cost of a final good than of the inputs.
• D) It depends on the amount of inventories held at the beginning and end of the year.