Question

Explain a numerical example to show all the three methods of calculating GDP gives us the same answer.

Answer 1

The three different methods of calculating national income are production ,income and expenditure method.

The total cost of production in the economy will always equal the wages paid to labourers ,rent to the landowner ,interest on capital and profit to the entepreneurs.and all this combines to form the income of the economy.hence production equals income.

Now the total income earned is spent on the output produced in the economy and therefore the income equals the expenditure in the economy.

And so we call it The circular flow of income.

Answer 2

Answer:

give me the answer in numerical order