GDP
The value of all and services produced in
goods an
economy within a
year
Method :
Output method added value of all goods and services produced
within a year
Income method added value of all factor incomes earnt within
a year
Expenditure method added value of all expenditure on goods and
services within .. a year
outcome =
Income =
Expenditure
> measure of growth
Risk of double counting
e.
g .
counting the value of a
primary good and then also
counting
the value of the secondary good it is made into .
this is why the FINAL value must be used
Doesn't count informal
activity
e.
g -
gardening , babysitting s acts that you may perform yourse
but still hold '
value
Errors in data collection
the chance for error is very Large given the amount of data that
needs to be collected and reviewed
The value of all and services produced in
goods an
economy within a
year
Method :
Output method added value of all goods and services produced
within a year
Income method added value of all factor incomes earnt within
a year
Expenditure method added value of all expenditure on goods and
services within .. a year
outcome =
Income =
Expenditure
> measure of growth
Risk of double counting
e.
g .
counting the value of a
primary good and then also
counting
the value of the secondary good it is made into .
this is why the FINAL value must be used
Doesn't count informal
activity
e.
g -
gardening , babysitting s acts that you may perform yourse
but still hold '
value
Errors in data collection
the chance for error is very Large given the amount of data that
needs to be collected and reviewed
