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Explain the Two Approaches to Calculating GDP

question 97

Essay

Explain the two approaches to calculating GDP.


Definitions:

Useful Life

The estimated period a fixed asset is expected to be usable for its intended purpose, affecting depreciation calculations.

Kilometres Per Litre

A measure of fuel efficiency in vehicles, indicating how many kilometres a vehicle can travel on one litre of fuel.

Fuel Price

The cost at which fuel is sold, influenced by various factors including global supply, demand, taxes, and geopolitical events.

Sustainability

Meeting the needs of the present without compromising the ability of future generations to meet their needs.

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