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How does the income approach to measuring GDP compare to the production and expenditure approach to measuring GDP? O A. It is the same, because

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How does the income approach to measuring GDP compare to the production and expenditure approach to measuring GDP? O A. It is the same, because all revenues are either payed to workers at the company or to the owners of the company. OB. It is higher, because there are multiple stages along the production process where income is earned. O c. It is higher if the economy is in a time of strong economic growth, and it is lower in times of recession. OD. It is lower, because some of the revenue from selling goods goes back into the production of more goods. Scenario: A typical resident of the country of Univertopia consumes a simple basket of goods consisting of soda, pizza, and Frisbees. The base year's basket contains 500 sodas, 200 pizzas, and 40 Frisbees. The prices of these goods over 8 years are given in the table. Year 2010 2011 2012 2013 2014 2015 2016 2017 Soda $1.50 $2.00 $2.00 $3.00 $2.50 $2.50 $2.75 $3.25 Pizza $7.00 $8.00 $7.50 $7.50 $8.50 $9.00 $11.00 $12.00 Frisbees $12.00 $12.00 $12.50 $11.50 $12.00 $13.00 $13.50 $15.00 3 Using 2014 as the base year, the inflation rate in 2017 is 3:0 O A 2.5 percent OB. 6.7 percent OC. 9.3 percent How does the income approach to measuring GDP compare to the production and expenditure approach to measuring GDP? O A. It is the same, because all revenues are either payed to workers at the company or to the owners of the company. OB. It is higher, because there are multiple stages along the production process where income is earned. O c. It is higher if the economy is in a time of strong economic growth, and it is lower in times of recession. OD. It is lower, because some of the revenue from selling goods goes back into the production of more goods. Scenario: A typical resident of the country of Univertopia consumes a simple basket of goods consisting of soda, pizza, and Frisbees. The base year's basket contains 500 sodas, 200 pizzas, and 40 Frisbees. The prices of these goods over 8 years are given in the table. Year 2010 2011 2012 2013 2014 2015 2016 2017 Soda $1.50 $2.00 $2.00 $3.00 $2.50 $2.50 $2.75 $3.25 Pizza $7.00 $8.00 $7.50 $7.50 $8.50 $9.00 $11.00 $12.00 Frisbees $12.00 $12.00 $12.50 $11.50 $12.00 $13.00 $13.50 $15.00 3 Using 2014 as the base year, the inflation rate in 2017 is 3:0 O A 2.5 percent OB. 6.7 percent OC. 9.3 percent

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