GDP Measurement Techniques

GDP can be determine is three ways:

1. The product approach 
2. The income approach
3. The expenditure approach

1. Product Approach: Market value all final goods and service calculate during one year. The product approach is also called as not product or value added method. This method consists of three step:
a) Estimating the gross value of domestic output in variance economic activities.
b) Determine the intermediate conduction such as the cost of materials supply and service use to produce final goods and service.
c) Detective intermediate conduction from gross value to obtain the net value of domestic output.

2. Income approach: Some total of income of individual living in a country during one year. 
National income expenditure accounts divide into five categories.
a) Wage, salary and supplementary labor income
b) Corporate profit
c) Interest and miscellaneous invest income
d) Farmer’s income 
e) Income from non-firms unincorporated business

3.Expenditure approach: All expenditure in card by individual during one year. In economics, most things are product hot sell. Therefore measuring the total expenditure of money used to buy things is a way of measuring production.