Question

When calculated correctly, the income approach and the expenditure approach should

a. equal each other.
b. negate each other.
c. reveal a difference of 25%.
d. reveal a difference of 50%.

Answer 1

The answer is .A They should equal each other

Income approach and expenditure approach are just different methods to calculate gross domestic products ( one emphasizing on income and the other one emphasizing on expenditure) , and if Calculated properly, the result should be equal each other