Using the expenditure approach, gross domestic product is calculated as:
Correct answer: A. Private consumption + investment + government spending + net exports
- A. Private consumption + investment + government spending + net exports
- B. Private consumption + saving + taxation + imports
- C. Wages + rent + interest + profits + depreciation
- D. Exports + imports + government revenue + private saving
Explanation
The expenditure approach adds consumption, investment, government spending and net exports. Net exports mean exports minus imports, so imports are subtracted from total expenditure.
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About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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