If one has data for the following categories: net interest, government spending, corporate profits, net exports, gross private domestic investment, rental income, and personal consumption expenditures, which measure of GDP can be calculated?

a) GDP using the expenditures approach

b) GDP using the income approach

c) GDP using both approaches

d) There is not enough information to calculate GDP using either approach.

The correct answer is letter "A": GDP using the expenditures approach.

Explanation:

There are three main approaches to measure the Domestic Gross Product (GDP): the Expenditure Approach, the Income Approach, and the Added Value Approach. Using the Expenditure Approach to calculate the GDP implies:

GDP = C + I + G + N

Where:

Thus, with the information provided we could calculate the GDP using the Expenditure Approach.

answer; capital structure decision;

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