Explain using examples the three measures of measuring GDP​

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Explanation:

The gross domestic product means the value in terms of money of the goods that a nation produces. The three measures of measuring the gross domestic product are:

1. Expenditure approach: This approach has to do with the addition of all the expenses that was incurred in a particular economy on the final goods and services. This can be calculated using C+I+G+(X-M)

where,

C = consumption.

I = investment

G = government expenditure

X = export

M = import

2. Income approach: This involves the addition of all the income that is earned in a particular country for the year. In this case, one will need to add the wages, salaries, interest, profit and rent.

3. Value added approach: This has to do with the addition of the value added which is down at every production level.

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