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1 expenditure approach there are three main groups of expenditure household business and the.
Gdp using income approach formula. Unlike the expenditure method the income approach to measuring gdp is based on the total income a country earns. In the following paragraphs we will take a closer look at each of those components and learn. The income approach to measuring the gross domestic product gdp is based on the accounting reality that all expenditures in an economy should equal the total income generated by the production. According to the income approach gdp can be computed by finding total national income tni and then adjusting it for sales taxes t depreciation d and net foreign factor income f.
Gdp is gross domestic product and is an indicator to measure the economic health of a country. The formula to calculate gdp is of three types expenditure approach income approach and production approach.
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