Which Approach to GDP Adds Up Spending on All Final

question 73

Multiple Choice

Which approach to GDP adds up spending on all final goods and services produced in the United States during the year?

• A) the intermediate goods and services approach
• B) the final goods and services approach
• C) the income approach
• D) the expenditure approach
• E) the double-counting approach

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Definitions:

Discounted Payback

The period of time required to recoup the cost of an investment considering the time value of money through discounted cash flows.

Financial Basis

The underlying value or criteria used for accounting or financial management purposes, often referred to as the method of recognizing revenues and expenses.

Production Process

The method or series of actions taken to manufacture a product, from the acquisition of raw materials to the final product.