In order to measure gross domestic product, we can follow a. three approaches: the expenditure approach, the income approach, and the market-based approach. b. only one approach: the circular flow approach. c. only one approach: the national accounts approach. d. two approaches: the expenditure approach and the income approach. e. three approaches: the expenditure approach, the income approach, and the production approach.

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Ranger

Business

18 December, 02:21

In order to measure gross domestic product, we can follow a. three approaches: the expenditure approach, the income approach, and the market-based approach. b. only one approach: the circular flow approach. c. only one approach: the national accounts approach. d. two approaches: the expenditure approach and the income approach. e. three approaches: the expenditure approach, the income approach, and the production approach.

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Answers (1)

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Hannah Figueroa · Answer 1

The correct answer is E.

Explanation:

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It is an indicator to measure the economic health of a country. Most of the individual data sets will also be given in real terms, meaning that the data is adjusted for price changes, and is, therefore, net of inflation.

GDP can be determined via three methods. All, when correctly calculated, should generate the same figure. These three approaches are often termed the expenditure approach, the output (or production) approach, and the income approach.