Unit 3.1 · Measuring Economic Activity and Illustrating Its Variations
Equivalence of Income, Output, and Expenditure Approaches
AO2AO4
Syllabus Requirement
Illustrates that GDP can be measured by summing incomes, outputs, or expenditures—linked to circular flow.
Assessment Objectives
AO2Application and Analysis
AO4Use of Appropriate Skills
Summary
This topic explains how national income, output, and expenditure are interconnected and can be measured using different approaches. Understanding these concepts is essential for analyzing economic activity and the relationships between various economic agents in an economy.