Explain how gdp is calculated using income method?

Question: Explain how gdp is calculated using income method?

GDP (Gross Domestic Product) is a measure of the total value of goods and services produced in a country over a given period of time. The income method is one of the approaches used to calculate GDP, which involves adding up all the income earned by households and businesses within a country's borders. The income method includes several components such as wages and salaries, profits earned by businesses, rent, interest, and dividends received by households. To calculate GDP using the income method, the total income earned by all factors of production in a country is summed up, including employee compensation, corporate profits, rental income, interest income, and proprietors' income. This total income figure is then adjusted for taxes and subsidies to arrive at the net domestic product, which represents the GDP of the country.

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