3 Indian & AP Economy and Planning · 3.2.2 National income

3.2.2.3 Measuring GDP: product, income and expenditure methods

The same GDP can be counted three ways, as output (value added), as incomes earned, or as spending on final goods, and in theory all three give the same total.

  • APPSC Group 1
  • Advanced level
  • 7 min read
  • Full course

Key terms

  • value added method
  • product method
  • income method
  • expenditure method
  • double counting
  • intermediate goods
  • compensation of employees
  • operating surplus
  • mixed income
  • transfer payments

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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