Question 48
National IncomeUse the above diagram to answer questions 46 to 48. In the same diagram, (III) refers to the calculation of national income through the
- A.income approach
- B.government earnings approach
- C.expenditure approach
- D.output approach
- E.flow of funds approach.
Show the answer and explanation
Answer: C (expenditure approach)
Explanation
Flow (III) is consumption expenditure on goods and services, so summing spending is the expenditure approach.