The Expenditure Approach Measures GDP by Adding Together

question 98

Multiple Choice

The expenditure approach measures GDP by adding together

• A)wages, salaries and supplementary labour income, and other factor incomes.
• B)wages, salaries and supplementary labour income, other factor income, subsidies paid by the government, indirect taxes paid, and income of nonfarm unincorporated businesses.
• C)compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and capital consumption expenditures, and by subtracting subsidies paid by the government.
• D)the total expenditures of consumers, firms, net exporters, and by governments at all levels.
• E)the total expenditures of consumers and firms.

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Definitions:

Pathways

Routes or courses that something takes to move or progress from one point to another, often used in reference to neural pathways in the brain.

Processes

A series of actions or steps taken to achieve a particular end.

Trichromatic Theory

A theory explaining color vision as a result of the retina containing three types of receptors that are sensitive to red, green, and blue wavelengths of light.

Opponent Process Theory

A psychological and neurological model that describes how humans perceive colors as the result of opposing responses between two sets of cones in the eyes.