When the Expenditure Approach Is Used to Measure GDP, the Major

question 39

Multiple Choice

When the expenditure approach is used to measure GDP, the major components of GDP are

• A) consumption, investment, indirect business taxes, and depreciation.
• B) employee compensation, rents, interest, self-employment income, and corporate profits.
• C) employee compensation, corporate profits, depreciation, and indirect business taxes.
• D) consumption, investment, government consumption and gross investment, and net exports.

---

Definitions:

Gallons

A unit of measurement for volume primarily used in the United States, equal to 3.785 liters.

Gas

A state of matter consisting of particles that are not bound together, allowing it to expand to fill the shape of its container, commonly used as a fuel or energy source.

Special Bonus

An additional payment or reward given to an employee or group, often as recognition for exceptional work or achievement.

Fund

A pool of money set aside for a specific purpose or invested in a variety of financial instruments to generate returns for its investors.