True or false. with explanation The expenditures and income approaches to GDP yield identical results because...

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True or false. with explanation

The expenditures and income approaches to GDP yield identical results because goods which are not sold in one year will be so

business economics

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Answer 1

Answer #1

As we know that, GDP is the monetary value of all goods and services produced in an economy over a period of time say one year. The GDP doesn't take into account the net factor income from abroad.

There are three methods of measuring GDP as:-

Income method, expenditure method and production or output method.

The correct option is (True).

The savings of an individual are the expenditure also. The income of one person is devoted to Consumption or savings.

Hope you got the answer.

Kindly comment for further explanation.

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Answer 2

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