Describe the three different methods for calculating GDP. Explain why, when calculating GDP, the result is...

Describe the three different methods for calculating GDP. Explain why, when calculating GDP, the result is the same no matter which of these three methods we use.

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Expert Solution

The three different methods of calculating GDP are expenditure method, income method and product valuation method.

All of these methods lead to a same value of GDP because more or less they count the same thing in the market, for example if a good is produced for $100 then as per product value added method the GDP will be $100, the person in the market purchasing it will have to spend the same $100 and the income of the seller will be $100. Its counting the same value but at three different point.

Rahul Sunny answered 1 year ago

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