If C = Consumption, G = Government Expenditures, and I

question 345

Multiple Choice

If C = consumption, G = government expenditures, and I = gross private investment expenditures, the mathematical representation of Gross Domestic Product (GDP) using the expenditure approach is

• A) Gross Domestic Product (GDP) = C + I + G + Transfers.
• B) Gross Domestic Product (GDP) = C + I + G + Imports.
• C) Gross Domestic Product (GDP) = C + Imports.
• D) Gross Domestic Product (GDP) = C + I + G + Net exports.

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Definitions:

Declining-Balance Depreciation

A method of accelerated depreciation where an asset loses value by a fixed rate, resulting in larger depreciation charges in the earlier years and smaller charges in the later years.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up over a period.

Depreciation Rate

The percentage rate at which an asset is depreciated across its useful life, impacting how much of its cost is allocated as an expense each year.

Accelerated Depreciation

A method of depreciation in which an asset loses book value at a faster rate than the traditional straight-line method.