In order to measure gross domestic product,we can follow
A)only one approach: the circular flow approach.
B)only one approach: the national accounts approach.
C)two approaches: the expenditure approach and the income approach.
D)three approaches: the expenditure approach,the income approach,and the production approach.
E)three approaches: the expenditure approach,the income approach,and the market-based approach.

Question

Quizplus · Accepted Answer

The most commonly used approaches to measuring GDP are the expenditure approach and the income approach. The circular flow approach is a model used to explain how different sectors of the economy interact, but it is not used as a direct method for calculating GDP. The national accounts approach is not a distinct method for measuring GDP, but rather a general term for the statistical methods that countries use to track economic activity. The production approach and market-based approach are not typically used in isolation to measure GDP, but may be used in conjunction with the expenditure and income approaches. Therefore, the best choice is C.

In Order to Measure Gross Domestic Product,we Can Follow