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Question

What is/are the way/s in which GDP- Gross Domestic Product be calculated?

A The Income Approach Correct Answer Incorrect Answer
B The Expenditure Approach Correct Answer Incorrect Answer
C The Income Approach & Output Approach Correct Answer Incorrect Answer
D The Expenditure Approach & Output Approach Correct Answer Incorrect Answer
E The Expenditure Approach, Income Approach & Output Approach Correct Answer Incorrect Answer

Solution

The expenditures approach says GDP= consumption + investment + government expenditure + exports - imports. The income approach sums the factor incomes to the factors of production. The output approach is also called the "net product" or "value added" approach.

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