C is corrent. The requirement is to identify the component that is not included in the formula to calculate gross domestic product. C is corrent because GDP may be calculated by adding personal consumption expenditures, plus gross private domestic fixed investment, plus government expenditures, adjusting for net exports and changes in business inventories. Household income is not included in the formula.
A is incorrect because it represents an item that is included in the formula.
A is incorrect because it represents an item that is included in the formula.
D is incorrect because it represents an item that is included in the formula.
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