Question

What are the main components of measuring GDP

with what is produced?

Short answer

Gross domestic product can be measured either by the sum of what is bought into the economy using the expenditure approach or by the income earned over what is produced using the income approach.

Step-by-step solution

Step 1. GDP

Gross Domestic Product (GDP) is the standard measure of the value-added value created through the production of goods and services in a country during a given period.

Step 2. Explanation

Durable goods, non-durable goods, services, structures, and changes in inventories are the main components of measuring GDP with what is produced.