ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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wages.
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interest paid to lenders.
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consumer expenditures.
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profits.
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Detailed explanation-1: -an approach to calculating GDP that involves adding up all of the income earned within the borders of a country in a given year; the income approach adds up wages, rents, interest, and profits.
Detailed explanation-2: -Government and household interest payments are not included in the national income. Profits (PR): The amount firms have left after paying their rent, interest on debt, and employee compensation. GDP calculation involves accounting profit and not economic profit.
Detailed explanation-3: -The correct answer is B. Incomes such as rental income, corporate profits, labor income, and interest incomes are included in the national income approach. The net export is a component of the GDP equation using the expenditure approach.
Detailed explanation-4: -The Gross Profit of companies and the Self-Employed, plus the wages of employees (Compensation of Employees). plus all Taxes on Products like VAT. minus all ( like renewable energy subsidies.