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Explain why we can measure the GDP or output of a country by adding up either...

Explain why we can measure the GDP or output of a country by adding up either the market value of production in that country or by adding up the income earned by people in that country.

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Answer - The GDP stands for the Final value of the goods and services produced in the domestic territory of economy. Thus this gived us the formula for the Value Added Method of GDP calculation in which the production in the economy is directly added up for the GDP.

In income method , we earn because we give the efforts in the production of goods and services. That income is the result of the efforts done for the production of goods. Hence this makes up the income method for the GDP calculation.

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