Question

Which of the following approaches of calculating GDP is the most accurate?

A: inflation approach
B: income approach
C: expenditure approach
D: none of these

Answer 1

Answer:

c

Explanation:

• it avoids double counting by excluding intermediate goods and services and also second-hand goods.
• excludes non-productive services like scholarships, pensions and more
• excludes transfer of property like bonds and stocks.

this points make the expendithre more accurate because it avoids over-estimation and under-estimation of the country's economy.