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One way to calculate GDP is the income approach, which

A.adds up all the money spent by all the buyers.
B.adds up all the income collected by all the sellers.
C.adds up all revenue earned by overseas companies.
D.adds up all revenue earned by foreign companies with the nation.

Respuesta :

Answer

B. adds up all the income collected by all the sellers.

Explanation

Calculating GDP via the income approach of the established approaches, the income generated by all factors of production is the most accurate answer for the Gross Domestic Product (GDP) of a country. This therefore establishes that the income generated by factors in the household in exchange of the services or products they have provided to consumers, represent the value of the total goods and services sold in the economy.


Answer: B.adds up all the income collected by all the sellers.

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