27
QuizMultiple Choice

Production, Markets, and Trade — Quiz

Question 27 • Financial Math

What is subtracted when calculating GDP using the expenditure approach?

Answer
A
Investments are subtracted from expenses.
B
Imports are subtracted from exports.
C
Household expenses are subtracted from household income.
D
Government spending is subtracted from taxes collected.

Explanation

The expenditure approach calculates GDP as consumption + investment + government spending + exports − imports. Imports are subtracted because they were produced outside the country and are already included in some spending categories. Therefore, the correct choice is “Imports are subtracted from exports.”

AI-written and checked against the verified answer.

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