To Calculate GDP from the Expenditure Side,one Must Add Together

question 59

Multiple Choice

To calculate GDP from the expenditure side,one must add together

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

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Definitions:

Minimize Profits

The strategy of reducing profits to a minimum, possibly for tax advantages, ethical reasons, or for future strategic positioning.

Maximize Them

The process of making the most or best of certain resources, outcomes, or situations to achieve the highest possible benefit or efficiency.

Principal-agent Relationships

A framework within economics that describes the dynamics when one entity (the principal) hires another (the agent) to perform a task on their behalf, often involving delegation of decision-making authority.

Observability

The degree to which the internal states of a system are accessible to its external observation, often used in context of controlling complex systems.