Question

How to calculate GDP

Answer 1

Answer:

There are three ways of calculating GDP - all of which in theory should sum to the same amount:

National Output = National Expenditure (Aggregate Demand) = National Income.

(i) The Expenditure Method - Aggregate Demand (AD)

GDP = C + I + G + (X-M) where.

The Income Method – adding together factor incomes.

Answer 2

Answer :-

The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports)