Question (5 marks)

a) There are two methods of calculating GDP: income approach and expenditure approach.

According to your opinion which method is better suited for calculating the GDP of Bangladesh?

Briefly explain the reasons behind your answer.

b) When calculating the GDP using the expenditure method why do we subtract "imports"?

c) When calculating the GDP of Bangladesh using the income approach why do we add the

"earnings of foreigners living in Bangladesh"?

d) When calculating the GDP of Bangladesh using the income approach why do we subtract

"earnings by Bangladeshis living in foreign countries"?