Difference between Expenditure and Income GDP

Reply Sat 31 Jan, 2015 07:39 am
I understand the calculations for either method but I don't understand the conceptual differences between either approach to finding GDP. If both methods result in the same number, why does it matter? Are the two methods only necessary as far as they can be used to check the accuracy of each other?
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cicerone imposter
Reply Sat 31 Jan, 2015 07:46 am
I'm not sure what you mean by either method. Can you explain?
Reply Thu 5 Feb, 2015 10:08 am
@cicerone imposter,
GDP stands for Gross Domestic Product. The GDP, is one of the most common measures on the state of the economy for any nation. GDP is the total market value of all goods and services produced in a country for a given time period. The time period most often used is one year, which is then compared to past years as a way to measure the improvement or decline of a country’s economic situation.

There are two ways to calculate GDP: Income and Expenditure approach. As to why economists use different approaches, who knows. Economists seldom like simplicity.
Reply Thu 5 Feb, 2015 10:21 am
This might help a little.

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