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.
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