Explain the Two Approaches to Calculating GDP

question 97

Essay

Explain the two approaches to calculating GDP.

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Definitions:

Linear Programming

A mathematical technique for maximizing or minimizing a linear objective function, subject to linear equality and linear inequality constraints.

Constraints

are limitations or restrictions that affect the planning and execution of projects, including time, budget, materials, and human resources.

Shadow Price

The monetary value assigned to one additional unit of a resource in the context of a constrained optimization problem.

Assembly Time

The total time required to put together various components or subsystems into a finished product.