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What the three different approaches to measuring GDP. In each case, what is aggregated to form...

What the three different approaches to measuring GDP. In each case, what is aggregated to form the GDP estimate?

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Answer #1

GDP Gross Domestic Product refers to the total goods and service produced by the country in a given period of time generally one year.

There are three methods used in the measuring the GDP as follows

Product method: The money value of the all the goods and service produced in given year only for finished goods

Income method: Thre are four factors of the production labor, capital, organization, land. Labours get wages for their service, capital gets interest, land gets rent and, the organization gets profit for their service. The national income measured the flow of factor income.

Expenditure method: Under this method nation income measured as the flow of expenditure GDP is sum- total private consumption expenditure, investment expenditure (private and government) net exports.

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