GDP can be calculated from either the expenditure approach or the income approach because

Question

Quizplus · Accepted Answer

The expenditure approach calculates GDP by adding up all expenditures made on final goods and services over a period, while the income approach calculates GDP by summing all incomes earned (wages, rents, interest, and profits) from producing these goods and services. Since every expenditure by a buyer is a receipt by a seller, both approaches ultimately measure the same total value, making them equivalent methods for calculating GDP.

GDP Can Be Calculated from Either the Expenditure Approach or the Income