Question

Salaries of public employees is part of this expenditures approach for calculating the GDP.

a. gross exports
b. gross imports
c. sum of government spending
d. sum of all the country's businesses spending on capital
e. consumer spending

Answer 1

The salaries of public employees fall under the category of government spending in the expenditures approach for calculating GDP. This is part of the total calculation of GDP from the demand side. The Correct Answer is Option.C.

Step-by-step explanation:

The salaries of public employees are part of the expenditures approach for calculating the Gross Domestic Product (GDP). This component falls under the category of government spending on goods and services.

To calculate the total GDP using the expenditures approach, you would add up consumer spending (consumption), business spending (investment), government spending, and net exports (exports minus imports). Specifically, for the question at hand regarding salaries of public employees, this would be captured in the government spending component, which includes all government expenditures on goods and services, including salaries of public workers.

For example, if Country A has government purchases of $1,000 billion, this would include spending on public employee salaries and would be part of the total calculation of the GDP from the demand side.