Question

How do you measure GDP?​

Answer 1

Step-by-step explanation:

Gross Domestic Product (GDP) is a measure of the total value of goods and services produced in a country over a specified time period, usually a year. There are three ways to measure GDP:

1. The production approach: This method measures GDP by adding up the value of all goods and services produced within the country's borders, regardless of who owns the factors of production.
2. The expenditure approach: This method measures GDP by adding up total consumption, investment, government spending, and net exports (exports minus imports).
3. The income approach: This method measures GDP by adding up the total income earned by all residents and businesses within a country's borders.

Each of these methods should result in the same total amount of GDP, but the expenditure and income approaches are the most commonly used methods for calculating GDP.

Answer 2

Step-by-step explanation:

Measuring GDP: Approaches

Sajan Rai

How do you measure GDP?

Gross Domestic Product (GDP) is the most widely used measure of a country's economic output. It is calculated as the sum of all goods and services produced within a country's borders in a specific period of time, usually a year. There are three ways to measure GDP:

The production approach: measures the total value of goods and services produced within a country's borders.

The expenditure approach: adds up total spending on consumption, investment, government purchases, and net exports.

The income approach: sums up all the income generated by production, including compensation to employees, gross operating surplus, and taxes less subsidies.

Each approach should give the same GDP number, but the expenditure approach is most commonly used because it is the easiest to obtain data for.