ECONOMICS
GDP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
only one approach:the circular flow approach.
|
|
|
two approaches:the expenditure approach and the income approach.
|
|
|
three approaches:the expenditure approach, the income approach, and the production approach.
|
|
|
three approaches:the expenditure approach, the income approach, and the market-based approach.
|
Detailed explanation-1: -The expenditure approach begins with the money spent on goods and services. Conversely, the income approach starts with the income earned (wages, rents, interest, and profits) from the production of goods and services.
Detailed explanation-2: -GDP can be measured in three ways. The production approach, the income approach and the expenditure approach. The production, or value added, approach consists of summing the gross value added of all industries (resident sectors).
Detailed explanation-3: -The income approach and expenditure approach are both measures used in determining the GDP. Using both approaches allows analysts to create a comparison between the two and amend any noticeable errors.
Detailed explanation-4: -The Output Method (all value added by each producer), The Income Method (all income generated) and. The Expenditure Method (all spending).
Detailed explanation-5: -GDP = C + G + I + NX. C = consumption or all private consumer spending within a country’s economy, including, durable goods (items with a lifespan greater than three years), non-durable goods (food & clothing), and services. More items •26-Nov-2022