ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the formula for calculating GDP if using the expenditure approach?
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consumption + investment + government spending + net exports
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wages + interest + rent + profit
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add up all values added to the good
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none of these
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Explanation:
Detailed explanation-1: -They participate in an active learning demonstration of the GDP expenditure equation [GDP = C + I + G + (X – M)] to understand the relationships among the variables and the effect of changes in aggregate spending on GDP. Special attention is given to the effect that imports have on GDP.
Detailed explanation-2: -The Output Method (all value added by each producer), The Income Method (all income generated) and. The Expenditure Method (all spending).
There is 1 question to complete.