Question

Select which part of the expenditures approach of calculating the GDP is being described:

Answer 1

Construction of a new mine is part of this expenditures approach for calculating the GDP: sum of all the country's businesses spending on capital

Explanation:

The monetary value of all the goods and services that are produced in a country on a given period refers to the GDP. Using the GDP value, the economic growth of a country can be determined. The GDP of a country can be calculated with the help of three methods such as production, income, and expenditures.

The expenditure approach in the calculation of GDP includes the purchase of all goods and services in a given period. Things that are included in this approach are government spending, consumer spending, net exports and, business investment spending. The Construction of a new mine includes sum of all the country's businesses spending on capital.