Measuring GDP using the Income Approach and the Expenditure Approach - HD

GDP is generally understood to represent the health of a nation's economy, and most people realize that if GDP is growing, things are going well, while if it's falling things have turned sour in the economy. But what, precisely, does GDP measures? There are two primary methods for measuring GDP, which should yield the same result even though they measure completely different factors.

-The income approach: measures the total incomes earned by households in a nation in a year.
-The expenditure approach: measures the total amount spent on the goods produced by a country in a year.

By examining the circular flow model of a nation's economy, we can demonstrate why every dollar earned by a household in a nation's resource market will ultimately be spent in the product market, or leaked through taxes, savings, and import spending, leading to injections in the form of government spending, investment and export sales.

In the video lecture below, the two methods for measuring GDP are introduced, and the various components it includes are explained in detail.

[manojkumarpandey]

Usually I don't make here I can't stop myself but to appreciate this one.

[drgunit]

The only video that made me properly understand how GDP is measured with the Income approach!

[veld]

One of the best Economics videos available on Youtube, very confident approaching my exams!

[lilyasser]

ربنا يخليك لينا يا اسطا، دانا منغيرك زماني سقط
you explain better than my teachers at school, thank

[charlotteaates]

Preparing to teach basic economic concepts - national income, circular flow etc and found this really helpful in terms of a way to explain this clearly - many thanks

[lukasbaral]

This one video is pretty much everything you need to know, brilliantly explained.

[truerealpearl]

So thankful for these videos!!! I kept reading my book and just couldn't get it, so thank you!

[mrs.m.w]

Wow, this was such a better explanation than my instructor. This answered every one of my lingering questions and even explained things I didn't know I didn't understand well. So very happy to have found this before my exam. Thank you!

[darktheme]

thank you for a simple to understand lesson.
you helped shorten the hours spent studying.

[theasmrgamerunexposed]

These videos are genuinely excellent I'm sure people learn more thanks to videos like these than they do in lectures

[chrisralte]

This is probably the best explanation on GDP.  Concise, simple & informative :)

[MN-neee]

best explanation of gdp calculation. comprehensive yet simple

[sooweichan]

Wow! This is literally the best video for measuring GDP and circular flow! Love the content!! Thank you!

[herifinamcasi]

thanks man, was really helpful for my midterm

[bhaskartarafdar]

I am from science background. But the way of explanation help me a lot to understand about GD.. thanks a lot Sir

[hahasong]

thank you for explanation! but I still can not understand why it is said that household earned in the resource market ultimately is spent in the product market？ I think they may save some money, and invest to the firms instead of buying goods in the product market.

[Jramirez]

Your explanation is good enough to teach at any age. Thank you.

[richbrainedutv]

Thank you very much. I have spent days trying to understand this but did not until today. Really appreciate you.

[JohnHaIo]

This taught me more than my prof does in 2 weeks of lecture. College is pointless and expensive.

[tierneyeducation]

Ah the classic income and expenditure approach. Makes me miss teaching!