The Expenditure Approach for the Calculation of GDP Includes Spending

question 4

Multiple Choice

The expenditure approach for the calculation of GDP includes spending on:

• A) consumption, investment, durable goods and exports.
• B) consumption, gross private domestic investment, government spending for goods and services, and exports.
• C) consumption, gross private domestic investment, government spending for goods and services, and net exports.
• D) consumption, net private domestic investment, government spending for goods and services, and net exports.

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Definitions:

Business Judgment Rule

A legal principle that protects corporate directors' decision-making from judicial review as long as the decisions are made in good faith.

Shareholder's Demand

A formal request by a shareholder, typically for corporate information or to take specific actions, under legal rights.

Court Piercing

A legal action where a court disregards the corporate entity and holds its owners personally liable for corporate debts or misconduct.

Derivative Action

A lawsuit brought by a corporation shareholder on behalf of the corporation against a third party.