Question

According to the production method the GDP is calculating like:

Answer 1

As per the production approach total GDP is the sum of gross value added by institutional units that are resident in the economy plus VAT,excise duty and custom duties.

VA= Total revenue - the value of intermediate goods.

It is measured by using expenditure approach

Y= C+I+G+(X-M)

here, Y is GDP,

C as consumpton,I as investment, G as govt spending and (X-M)= Net export

GDP is referred as financial strength of market