Question

What are the two ways of looking at GDP? rev: 04_09_2018 Multiple Choice
A.Output approach and consumption approach
B. Income approach and saving approach
C. Output approach and expenditures approach
D. Expenditures approach and income approach

Answer 1

Answer:

The correct answer is option C and D.

Explanation:

There are two approaches to calculate GDP.  

1. Income approach
2. Expenditures approach

The income approach calculates GDP by looking at the factor incomes earned by the factors of production.

The expenditure approach looks at consumption expenditure, investment expenditure, government expenditure, and net exports to calculate GDP.