Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What's the differences between the Expenditures Approach and the Resource-Cost Income Approach when measuring G.D.P ?? I have thought The expenditure approach is a method

What's the differences between theExpenditures Approachand theResource-Cost IncomeApproachwhen measuringG.D.P??

I have thought

The expenditure approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. In other words, this method measures what our country produces by assuming that the finished goods and services of a country equals the amount spent in the country for that time period, while the resource cost income approach measures GDP by gross domestic household income (GNP + indirect business taxes + depreciation + net income of foreigners*).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Legal Environment

Authors: Jeffrey F Beatty, Susan S Samuelson

3rd Edition

0324537115, 9780324537116

More Books

Students also viewed these Economics questions