Question
Which of the following best explains the difference between the value-added approach and the expenditure approach for measuring the GDP? The value-added approach considers the
Which of the following best explains the difference between the value-added approach and the expenditure approach for measuring the GDP?
The value-added approach considers the profits from intermediate goods, while the expenditures approach considers the money spent on final goods and services.
The value-added approach considers only the sales price of final goods and services, while the expenditures approach considers the profits from the sales of intermediate goods.
The value-added approach considers the income earned at each stage of a product's creation, while the expenditures approach considers only the input prices at the final production stage.
The value-added approach considers the prices of inputs for final goods and services, while the expenditures approach considers only the income earned at each stage of a product's creation.
The value-added approach considers the money spent buying productive output, while the expenditures approach considers the profits from the sales of intermediate and final goods.
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