Consumption in the Expenditures Approach to Calculating GDP Includes

question 120

Multiple Choice

Consumption in the expenditures approach to calculating GDP includes

• A)spending by businesses on plant and equipment
• B)spending by government on office buildings
• C)spending by households on new single-family houses
• D)changes in business inventories
• E)purchases of medical services at the local clinic

---

Definitions:

Legal Organization

The way a business is structured legally, such as a corporation, partnership, or sole proprietorship, affecting liability and tax treatment.

User Needs

User needs refer to the requirements and preferences of the end-users that a product, service, or system aims to fulfill.

Specialized Journals

Accounting books or ledgers used to record and track transactions of a similar type, such as sales or purchases, for efficient processing.

Original Entry

Describes the initial recording of a financial transaction in the accounting records or journal, marking the first phase in the accounting cycle.