How is GDP derived by using the expenditure method.
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The four categories of expenditure used by the expenditure approach method to calculate GDP are known as what? How can GDP be calculated using the expenditure approach?
1. An inflationary expenditure gap is the amount by which
a. aggregate expenditures at the full-employment GDP exceed those required to achieve the full-employment GDP.
b. aggregate expenditures at the full-employment GDP equal those required to achieve the full-employment GDP.
c. aggregate expenditures at the full-employment GDP are divided by the multiplier equal to those required to achieve the full-employment GDP.
d. aggregate expenditures at the full-employment GDP fall short of those required to achieve the full-employment GDP.
2. A positive GDP gap is associated with
a. a recessionary expenditure gap.
b. an inflationary expenditure gap.
c. a consumption expenditure gap.
d. a production expenditure gap.
3. A negative GDP gap is associated with
a. an inflationary expenditure gap.
b. a consumption expenditure gap.
c. a production expenditure gap.
d. a recessionary expenditure gap.
How to calculate GDP using expenditure approach?