Economy, asked by farzinnahor, 1 year ago

explain the income method of calculating GDP

Answers

Answered by luciferxixo
7
Bonjour!

Gross Domestic Product (GDP) is the total sum of final goods and services of each economic sector.

The expenditures approach says GDP = consumption + investment + government expenditure + exports – imports.

farzinnahor: for 6marks
Answered by Anonymous
12

The income method of calculating GDP is as follows-

  • The Income method considers taking into account all the incomes and expenses generated while producing output to calculate the GDP.
  • As per this method, all the expenses incurred should be equal to all the revenue earned during the period.
  • It is obtained by adding the national income, depreciation, sales tax, and net foreign income as well.
  • This measures the total income-based growth in the economy.
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