Which approach to measuring GDP adds up expenditures on financial goods and services?

The correct answer focuses on the expenditure approach to measuring GDP, which is a comprehensive method that accounts for the total spending on goods and services within an economy during a specific period. This approach specifically adds up all the expenditures made on final goods and services, which includes consumption by households, business investments, government spending, and net exports (exports minus imports).

When it comes to financial goods and services, they are also included in this calculation, as they represent a significant part of overall economic activity. By considering expenditures on these financial products, the expenditure approach captures the full scope of economic activity, including services from banks, insurance companies, and investment funds.

In contrast, other methods like the production approach focus on the output generated by various sectors of the economy, while the income approach looks at the incomes received by factors of production. The investment approach, although it does pertain to aspects of GDP, primarily emphasizes capital investments rather than aggregating total expenditures. Thus, the expenditure approach is the most accurate for including all expenditures in economic activity, making it the correct choice for measuring GDP and its components, including financial goods and services.