Question

The _____ adds up the spending by different parts of the economy, such as consumption, investment, government spending, and net exports.

income approach
product approach
expenditure approach

Answer 1

C. Expenditure approach

Answer 2

The expenditure approach adds up the spending by different parts of the economy, such as consumption, investment, government spending, and net exports. Correct answer: C

This approach measures the economy's output of a country, which is the total amount spent on the goods produced by a country in a year. By doing this it is the most widely used approach for estimating GDP.