The expenditure method of calculating GDP measures:  A. The total income earned by households and businesses  B. The total value of goods and services purchased by households and businesses  C. The total savings accumulated by households and businesses  D. The total investments made by households and businesses

Calculate GDP with expenditure approach.

Although we commonly use the expenditures approach to measure gross domestic product, we can also measure GDP by using the approach.

In the first class, we learned different approaches to measuring GDP. Which of the following methods are commonly used to calculate GDP？This is a multi answer question. You can select one or more options as the answer.A.Expenditure methodB.Income methodC.Value-added (production) methodD.Product calculation method

The correct formula for calculating the gross domestic product (GDP) by the expendituremethod for an open economy isA. consumption + investment + government spending.B. consumption + investment + government spending + exports – imports.C. consumption + investment + government spending + net income from abroad.D. consumption + government revenue + exports – imports – government spending.

Which of the following is not investment when calculating GDP using the expenditure method is: A. Firm A adds inventory B. Firm B builds a new factory C. Firm C purchases a computer D. Firm D purchases government bonds