Analyse the methods by which Gross Domestic Product (GDP) may be measured.

[joeking]

This is a part a) question from 2013 specimen paper. I know the different methods output, expenditure and income but how would I analyze them?

[YellowSpider]

This is a part a) question from 2013 specimen paper. I know the different methods output, expenditure and income but how would I analyze them?

i suppose how each one works to calculate the gdp.

maybe explain in expenditure why it's c+i+g+(x-m)

and likewise for the others.

and probably also the effectiveness of each or the effectiveness of gdp as a measure of economic performance.

you also need to define, and give examples where possible. so i don't think there's much in this.

do you have the mark scheme?

[Ossih]

This is a part a) question from 2013 specimen paper. I know the different methods output, expenditure and income but how would I analyze them?

I think you would go about it by first defining GDP.

Then:

Output method:

Explain how it's done

Explain the problem of double-counting (use an example)

Explain how that can be fixed by using the concept of value-added at each successive stage

Income method:

Explain how it's calculated

Explain that the main problem is that it may not include grey/parallel markets and so underestimates the GDP.

Expenditure method:

Explain how it's calculated.