What is the difference between the expenditure approach and income approach to GDP?

• A. The expenditure approach sums value added at every production stage, while the income approach measures GDP by deducting depreciation and net exports from total output.
• B. The expenditure approach counts only consumer purchases, while the income approach counts only business revenues.
• C. The expenditure approach totals spending on final goods and services (C + I + G + NX), while the income approach totals incomes earned by factors of production (wages, rents, interest, and profits); both should yield the same GDP.
• D. The expenditure approach includes intermediate goods and services, whereas the income approach excludes taxes and subsidies when measuring GDP.

Answer: (C)