Gross domestic product can be measured as the sum of

Question

a. consumption, investment, government purchases, and net exports.
b. investment, wages, profits, and intermediate production.
c. net national product, gross national product, and disposable personal income.
d. final goods and services, intermediate goods, transfer payments, and rent.
e. consumption, transfer payments, wages, and profits.

Answer 1

Gross domestic product (GDP) can be measured as the sum of:

a. consumption, investment, government purchases, and net exports.

This approach is known as the expenditure approach to calculating GDP, which sums up total spending on final goods and services in an economy.