When calculating GDP using the income approach, all expenditures in an economy equal the total income from producing goods and services.

Gross Domestic Product (GDP) is a key indicator that helps us see how strong a country's economy is. It represents the total value of all goods and services made in a country over a specific period, ...

So, instead of measuring the value of output, we can also measure GDP by measuring either the income or expenditure of people. The figures arrived at by any of the three methods must be the same.

Discrepancies GDP is measured through output approach and expenditure approach. The above sub-heads when added up amount to GDP calculation through the output method.

Calculating GDP via the “output method” rather than using the conventional aggregates of income and expenditure can provide a more accurate measure of activity in the economy.

During the past year, China embarked on a trial of calculating the growth of industrial output using an internationally practiced method instead of using the old planned-economy era method.

Now, China is calculating GDP based on economic activity of each quarter to make the data "more accurate in measuring the seasonal economic activity and more sensitive in capturing information on ...