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    Compare and contrast the expenditure versus income approach to GDP. Why are the results the same? What are some of the drawbacks of using GDP while doing international comparisons among countries?

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    The expenditure approach measures the market value of goods and services produced, while the income approach measures the income received by all producers in the country. Since the income is generated from the sale of the goods, the two approaches should result in the same value.

    GDP tells ...

    Solution Summary

    Comparison of the expenditure and income approaches to GDP