Question

The _____ adds up the market prices of final goods and services to calculate Gross Domestic Product (GDP).

a. expenditure approach
b. income approach
c. product approach

Answer 1

The expenditure approach adds up the market prices of final goods and services to calculate Gross Domestic Product (GDP). The correct answer should be A.

Answer 2

The expenditure approach adds up the market prices of final goods and services to calculate Gross Domestic Product (GDP). The expenditure method is the most widely used method when trying to estimate GDP. GDP stands for Gross Domestic Product which refers to the total value of goods and services that are provided in a country over the period of one year.