Choice "B" is correct. The expenditure approach to computing GDP includes exports and other components included in the mnemonic "GICE":
Government expenditures |
Capital investment |
Consumption |
Net exports |
Choice "c" is incorrect. Business profits are used in the income approach for computing GDP, not the expenditure approach.
Choice "a" is incorrect. Employee compensation is used in the income approach for computing GDP, not the expenditure approach.
Choice "d" is incorrect. The capital consumption allowance (depreciation) is used in the income approach for computing GDP, not the expenditure approach.
