GDP can be calculated using
A) the expenditure approach and the production approach.
B) the expenditure approach and the income approach.
C) the expenditure approach and the factor of production approach.
D) the expenditure approach and the resource approach.

Question

Quizplus · Accepted Answer

GDP can be calculated using either the expenditure approach or the income approach. The expenditure approach adds up all the spending on final goods and services in an economy (consumption, investment, government spending, and net exports) to arrive at GDP. The income approach adds up all the income earned by households, businesses, and the government in the production of goods and services, such as wages, profits, and taxes. The factor of production approach and resource approach are not commonly used methods for calculating GDP.

GDP Can Be Calculated Using