What Does the Expenditure Measure of GDP Accounting Add Together

question 14

Multiple Choice

What does the expenditure measure of GDP accounting add together?

• A)consumption, interest, government purchases, and net exports
• B)consumption, investment, government purchases, and net exports
• C)wages and salaries, profits, government purchases, and net exports
• D)wages and salaries, rent, interest, and profit

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Definitions:

Straight-Line

A technique for computing an asset's depreciation by distributing its cost evenly across each year of its expected useful life.

Double-Declining-Balance Method

An accelerated depreciation method that doubles the book value of an asset to calculate annual depreciation expense.

Residual Value

The approximated value of an asset at the conclusion of its period of utility.

Depreciation

Systematically dividing the cost of a tangible asset across the years it is expected to last.