Question

How does the figure arrived at in adding up the demand side components of GDP relate to the number arrived at by adding up all of the components of the supply side of GDP?

Answer 1

The figures arrived at in adding up the demand side and supply side of GDP

The size of a nation’s economy is usually expressed as its gross domestic product (GDP), that measures the worth of the output of all product and services created among the country in a very year. GDP is measured by taking the quantities of all product and services created, multiplying them by their costs, and summing the overall. Since GDP measures what's bought and sold within the economy, it is often measured either by the aid of what's purchased within the economy or what is created.

Demand is often divided into consumption, investment, government, exports, and imports. what's created within the economy are often divided into consumer durables, unserviceable product, services, structures, and inventories. To avoid double counting, GDP counts only the final output of products and services, not the assembly of the intermediate product or the worth of labor within the chain of production.