1.6.3.1 Calculating GDP
Completion requirements
We can calculate GDP one of three ways: by income, by expenditures, or by value added. The GDP by value added method calculates GDP by industry, and it provides multiple GDP estimates.
GDP by income is calculated by expressing income in terms of the prices paid by consumers, after all applicable taxes and subsidies have been deducted. GDP calculated by income provides a single GDP estimate.
GDP by expenditure is calculated by adding the final expenditures of the sectors of the economy. GDP calculated by expenditures provides a single GDP estimate.
Visit https://www.investopedia.com/articles/investing/051415/how-calculate-gdp-country.asp for more information about GDP calculations.
GDP by income is calculated by expressing income in terms of the prices paid by consumers, after all applicable taxes and subsidies have been deducted. GDP calculated by income provides a single GDP estimate.
GDP by expenditure is calculated by adding the final expenditures of the sectors of the economy. GDP calculated by expenditures provides a single GDP estimate.
Visit https://www.investopedia.com/articles/investing/051415/how-calculate-gdp-country.asp for more information about GDP calculations.