The two principle methods of measuring GDP are
A)the flow approach and the stock approach.
B)the expenditures approach and the income approach.
C)the intermediate approach and the value-added approach.
D)the domestic approach and the international approach.

Question

Quizplus · Accepted Answer

The two principle methods of measuring GDP are the expenditures approach and the income approach. The expenditures approach adds up all of the spending in the economy on final goods and services, including consumption, investment, government spending, and net exports. The income approach adds up all of the income earned in the economy through wages, profits, rents, and other sources. Both of these methods should yield the same result, as GDP represents the total value of goods and services produced in an economy.

The Two Principle Methods of Measuring GDP Are