Case Interview Prep

Category - Economics

In the expenditure methodology in calculating the GDP of a country, the following are variables EXCEPT:
  1. individual consumption
  2. government spending
  3. savings and loans
  4. gross investment
Explanation
Answer: C - To calculate the GDP of a country using the expenditure methodology, savings and loans are not included.

Key Takeaway: Using the expenditure methodology, the GDP of a country is calculated as such: individual consumption + government spending + gross investment + export/import differential. Savings and loans are not considered a component of the GDP under this calculation.
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