What is the income approach to calculating GDP?

The income approach to calculating gross domestic product (GDP) states that all economic expenditures should equal the total income generated by the production of all economic goods and services. The alternative method for calculating GDP is the expenditure approach, which begins with the money spent on goods and services.

What is the income approach to measuring a country's Gross Domestic Product (GDP)?

The income approach to measuring a country's gross domestic product (GDP) is based on the accounting principle that all expenditures in an economy should equal the total income generated by the production of all that economy's goods and services.

What is total factor income?

The sum of COE, GOS, and GMI is called total factor income; it is the income of all of the factors of production in society. It measures the value of GDP at factor (basic) prices. Adding taxes less subsidies on production and imports converts GDP at factor cost (as noted, a net domestic product) to GDP.