Question

Select all that apply.

Answer 1

Answer:

adding up consumption, investment, government expenses, and net exports

adding up the market prices of final goods and services produced in the US

adding up the incomes of producers and taxes paid to the government

Explanation:

GDP is measured by three approaches, namely production, expenditure, and income.

In the expenditure approach, GDP is obtained by the formula GDP = C + G + I + NX, where c is consumption. G is government spending, I  investment, and NX is net exports.  Net export is the difference between imports and exports. The expenditure approach is also the consumption approach.

The production approach calculates GDP by adding up the value of finished products. The Approach considers new products meant for consumption to avoid double counting.

The income approach recognizes the fact that expenditure is somebody's else income. Income considered includes wages paid to labor, the return on capital in the form of interest, the rent earned by land as well as corporate profits.