In Calculating GDP Using the Expenditure Approach, the Largest Component

question 29

Multiple Choice

In calculating GDP using the expenditure approach, the largest component is

• A) consumption spending.
• B) government spending.
• C) investment spending.
• D) spending on durable goods.

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Definitions:

Organizational Expenses

Costs incurred in the creation of a corporation or business entity, including legal fees, state incorporation fees, and promotional expenses.

Legal Fees

Costs incurred for legal services provided by attorneys or law firms to individuals or organizations.

Par Value

A nominal or face value assigned to a share of stock or bond, indicating its worth at the time of issue.

Common Stock

Common stock is a form of corporate equity ownership, a type of security representing an ownership interest in a corporation.