Gross measurement of economic domestic product/wealth]Part-6]

Ultimately it emerged that to  measure economic activity of a particular geographic zone-production of all sectors be added ,later on parameters /yardsticks were refined to evolve newer /better concepts of measurement  i.e income approach -in it income of all segments of economy of a year is added to derive annual outputs,further another approach insisted that if consumption/expenditure of all sectors in economy is added during year it could determine output,the relative merits and demerits of approaches are quite complex.

There are many issues ,of which impact in G.D.P is debated/contested,few examples-
1.Like official statistics fail to capture most of gains in our standard of living ,that comes from new and improved goods and services,it imply that rise in real income that comes with better technology etc with A.C ,anti cancer drugs ,new surgical procedures ,better communications which increases comfort level tremendously are not counted in official growth rates.
2.The official data does not count anything in G.D.P until it is sold in market ,the vast progress in labs,newer knowledge of natural and universal systems that would increase our survival and hold in future by present efforts are not given weight age today,further vast expansion in entertainment  and introduction of services by search engines,Facebook etc are ignored.
With evolving of services as a dominant force of economy made it necessary to look beyond approaches which only predominantly emphasize physical production in manufacturing and agriculture .
The measurement is typical and need precise avoidance of multiple counting and nuances,major approaches are- 
INCOME APPROACH-
The income mainly divided in salaries and wages,corporate profits,interest and misc investment income,farmers income,income from non-farm unincorporated incomes are added with adjustment for taxes and subsidies and depreciation to arrive at income figure to measure G.D.P.
Alternatively it is defined as adding of compensation of employees plus gross operating surplus or G.D.P =R+I+P+Sa+W where I for interest,P for profit R for rent W for wages Sa for tax,subsidy etc adjustment.
EXPENDITURE approach-
In economics most things are produced for sale ,therefore measuring the total expenditure of money used to buy things is a way of measuring production,Y =C+I+G+[X-M]where Y stands for G.D.P ,C for sum of consumption,Ifor investment,G for govt spending,[X-M]net exports.it is also like G.D.P [Y] =final consumption expences +G.C.F gross capital formation+net export.
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