explain the income method of calculating GDP
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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.
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:
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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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