Which item is included in the expenditure approach to calculating GDP?
Correct answer: A. Consumption expenditure by households
- A. Consumption expenditure by households
- B. Purchases of existing shares
- C. Unpaid household care work
- D. Resale of a used automobile
Explanation
The expenditure approach adds consumption, investment, government purchases, and net exports. Purchases of financial assets, unpaid services, and second-hand goods are not counted as current production in GDP.
Last updated
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
37 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Economics questions like this
Economics is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
Related questions
A contractionary fiscal policy is intended primarily to
A current account deficit in a country's balance of payments means that
A domestic company buying and constructing a factory in another country is recorded primarily as
A fall in the real interest rate is most likely to increase business investment because it
A persistent increase in the general price level caused by higher production costs is called