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.

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 2 years ago

3. Define GDP. Explain the various methods of calculating GDP. So, GDP is the total value...

3. Define GDP. Explain the various methods of calculating GDP. So, GDP is the total value of goods produced and services provided in a country during one year. For the gross domestic product, “gross” means that the GDP measures production regardless of the various uses to which the product can be put. I know that one method is the Expenditure method: GDP = private consumption + gross investment + government investment + government spending + (exports – imports). I need...

Define the GDP and what are the methods of calculating it?

What is GNP? Explain the methods of calculating GDP. answer my question soon

38. When calculating real GDP we keep ___ fixed from year to year. When calculating the...

38. When calculating real GDP we keep ___ fixed from year to year. When calculating the cost of living (consumer price index) we keep ____ fixed from year to year. Group of answer choices quantities : quantities prices : prices prices : quantities quantities : prices 2/ Which of the following will increase productivity? Group of answer choices an increase in human capital a decrease in the unemployment rate an increase in the growth rate of nominal GDP a decrease...

Describe three different methods for the detection exoplanets. For each method, explain what type of exoplanet...

Describe three different methods for the detection exoplanets. For each method, explain what type of exoplanet is the method most sensitive for detecting? i.e. large vs. small, close in vs. far out from its host star, cold vs. hot, massive vs. low mass

Give at least three problems of GDP to explain why a rise in a nation's GDP...

Give at least three problems of GDP to explain why a rise in a nation's GDP does not necessarily mean an increase in the "material welfare" of the concerned nation's individuals. Include your reasoning in your essay

Briefly explain specifically why categorical and quantitative variables require different methods in order to describe their...

Briefly explain specifically why categorical and quantitative variables require different methods in order to describe their distributions. A correct answer will accurately address BOTH types of variables and clearly explain the REASONS these two types of variables REQUIRE different methods. Be sure to address WHY the methods differ not just WHAT methods are used in each case.

Explain the advantages and disadvantages of the following four methods when calculating the harmonic response. 1....

Explain the advantages and disadvantages of the following four methods when calculating the harmonic response. 1. method of undetermined coefficients 2. a graphic method 3. complex number method 4. Laplace transformation

Question 2 a. What is GDP? Explain the three methods that the Australian Bureau of Statistics...

Question 2 a. What is GDP? Explain the three methods that the Australian Bureau of Statistics uses to calculate GDP. b. If in 2016 the CPI is 100 and nominal wages are $500 and in 2017 the CPI is 120 and nominal wages are $550. What is the level of price inflation from 2016 to 2017? Explain whether real wages have increased from 2016 to 2017? c. Define structural, frictional and cyclical unemployment. Which of these types of unemployment do...

C.K. Tang used three different privatisation methods. Explain how these different methods work and the pros...

C.K. Tang used three different privatisation methods. Explain how these different methods work and the pros and cons of these different methods from the viewpoints of the shareholder(s) wanting to take a company private versus minority shareholders who may prefer that the company remain listed.

Question