Question

Adding up all of the income in an economy in a given year is one approach to calculating which of the following?

Answer 1

The answer is Gross Domestic Product or GDP. It an essential indicator for the health of the economy, it focuses on the value o f good and services created for a certain period of time. There are two ways to measure the GDP first is the income approach can get by adding all the income accumulated in a year, the second ins expenditure approach can get by adding all the expenses.