The question really confuses me. On one hand, we can consider the wages as purchasing services from employees. On the other hand, the salary is also part of the cost of the products, thus it isn't "final services".
Consider the following scenarios:
- Firefighters' salary
Yes, it contributes to GDP under the expenditure approach
- Salary for the employees in a private firm
No, it doesn't
- A tycoon pays the salary for a personal guard directly.
Am I correct to say so? Can anyone explain this to me? Any help is appreciated. Thanks.