1.

How does GDP account for something that was produced for sale in one year and sold in the next year? 0 It is counted twice. 0 It is counted as an addition to inventory (which is in business investment) in the year it was produced, and the markup is counted in the year in which it is sold. 0 It is counted in the first year, and anything that happens later does not count. 0 It is counted in the second year. GDP can be calculated using 0 the way people spend money (but not the way people earn money). 0 the difference between the way people earn money and the way they spend it. Q the way people earn money (but not the way people spend money). 0 either the ways people earn money or the ways people spend money. The expenditures approach to GDP equals Consumption + Net Investment (Gross Investment-Depreciation) + Government Purchases + Net Exports. Employee Compensation - Profit - Net Property Income - Indirect Business Taxes-Depreciation - Income Earned Abroad. 0 Consumption + Gross Investment + Government Purchases + Net Exports. Employee Compensation + Profit + Net Property Income + Indirect Business Taxes + Depreciation - Income Earned Abroad. The income approach to GDP equals 0 Consumption + Gross Investment + Government Purchases + Net Exports. Employee Compensation + Profit + Net Property Income + Indirect Business Taxes + Depreciation - Income Earned Abroad. Consumption + Net Investment (Gross InvestmentDepreciation) + Government Purchases + Net Exports. 0 Employee Compensation - Profit - Net Property Income - Indirect Business Taxes - Depreciation - Income Earned Abroad