The two ways of looking at GDP are the
A) output approach and expenditures approach.
B) income approach and saving approach.
C) expenditures approach and income approach.
D) output approach and consumption approach.

Question

Quizplus · Accepted Answer

The two ways of looking at GDP are the expenditures approach, which measures GDP as the sum of all spending on final goods and services in the economy, and the income approach, which measures GDP as the sum of all incomes earned by the factors of production (capital and labor) in the economy. Option A and D are not correct as consumption approach is not a valid method to measure GDP. Option B is not correct as the saving approach is not relevant to measuring GDP.

The Two Ways of Looking at GDP Are the