GDP can be determined by using either the spending (right) side or the income (left) side of the circular flow diagram.

Name: GDP can be determined by using either the spending (right) side or the income (left) side of the circular flow diagram.
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Question

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GDP can be calculated using both the spending approach (counting the total amount of money spent on goods and services in an economy) and the income approach (summing up all the income earned by individuals and firms in an economy).

GDP Can Be Determined by Using Either the Spending (Right)