The approach to calculating GDP that measures the contribution of each firm to GDP is referred to as the

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The value added approach to measuring GDP calculates the contribution of each firm by subtracting intermediate goods and services from the value of the firm's output. This approach provides a more accurate picture of each firm's contribution to the overall GDP. The expenditures approach measures GDP by adding up all of the final expenditures, the factor payments approach measures GDP by summing up all incomes, and the productivity approach is not an approach used to measure GDP. The output approach is the same as the value-added approach.

The Approach to Calculating GDP That Measures the Contribution of Each