The two main methods of measuring GDP are
A) the income approach and the expenditure approach.
B) the income approach and the receipts approach.
C) the goods approach and the services approach.
D) the saving approach and the investment approach.

Question

Quizplus · Accepted Answer

The two main methods of measuring GDP are the income approach and the expenditure approach. The income approach sums up all the income earned by individuals and businesses. The expenditure approach measures the total spending on goods and services by households, businesses, and governments. These two methods provide complementary perspectives on the economy and are both necessary for an accurate measure of GDP.

The Two Main Methods of Measuring GDP Are