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In using the expenditure approach to measure GDP, consumption includes A) both the domestically and internationally (foreign) produced final and intermediate goods consumed by households and firms. B) both the domestically and internationally (foreign) produced final goods consumed by households and firms. C) the domestically produced but not the internationally (foreign) produced final and intermediate goods consumed by households and firms. D) the domestically produced but not the internationally (foreign) produced final goods consumed by households. E) both the domestically and the internationally (foreign) produced final goods consumed by households.

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In using the expenditure approach to measure GDP, consumption includes

 

A) both the domestically and internationally (foreign) produced final and

intermediate goods consumed by households and firms.

B) both the domestically and internationally (foreign) produced final goods

consumed by households and firms.

C) the domestically produced but not the internationally (foreign) produced final and

intermediate goods consumed by households and firms.

D) the domestically produced but not the internationally (foreign) produced final

goods consumed by households.

E) both the domestically and the internationally (foreign) produced final goods

consumed by households.

✅ Answers (1)

0
Private answer
  • D) the domestically produced but not the internationally (foreign) produced final

goods consumed by households.

Explanation:

Expenditure approach of measuring GDP adds up consumption (consumer spending), investment, government expenditure, and net exports. Consumption is broken down to purchases of durable goods like cars and nondurable goods like clothing and services. Consumption should be based on all goods and services within the country's borders excluding those produced by nationals in foreign countries. Note that GDP counts only the final goods and services and not intermediate goods.

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Answered on June 25, 2020 7:52 pm

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