chapter21 - Chapter 21 Problems#2 The expenditure approach...

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Chapter 21 Problems #2. The expenditure approach and the income approach both are ways to calculate the GDP because expenditure by one firm is income for another. It’s kind of like a cycle of money through the economy. #5. Double counting is a transaction counted more than once by error. GDP does not equal total sales because the total sales of all firms is larger. The GDP adds up value added by each firm (value of products

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