Which of the following methods could be used to calculate GDP?
A)the sum of all spending on final goods and services
B)the sum of all factor payments plus depreciation and indirect business taxes
C)the sum of all values added at each stage of production
D)All of the above could be used.

Question

Which of the following methods could be used to calculate GDP?
A)the sum of all spending on final goods and services 
B)the sum of all factor payments plus depreciation and indirect business taxes 
C)the sum of all values added at each stage of production 
D)All of the above could be used.

Quizplus · Accepted Answer

All three methods can be used to calculate GDP. The expenditure approach calculates GDP by summing up total spending on final goods and services. The income approach calculates GDP by summing up all the factor payments plus depreciation and indirect business taxes. The production approach calculates GDP by summing up the value added at each stage of production. Therefore, all of the above methods are valid ways to calculate GDP.

Which of the Following Methods Could Be Used to Calculate