The two approaches used by the government in estimating GDP are
A) statistical and nonstatistical.
B) survey and nonsurvey.
C) income and earnings.
D) expenditure and income.

Question

Quizplus · Accepted Answer

The two approaches used by the government in estimating GDP are expenditure and income. The expenditure approach adds up all spending in the economy, while the income approach adds up all income earned by households and businesses. These two approaches should yield the same result if done correctly.

The Two Approaches Used by the Government in Estimating GDP