The Methods of Calculating GDP Gross Domestic Product-GDP is the monetary value of all the finished goods and services produced within a country’s boarder in a specific time period. There are three alternative methods of computing GDP. This includes: 1. Value Added Method 2. Factor Income Method 3. Expenditure Method These methods are described below: 1. Value Added Method: This is also known as inventory method. In this method the sum total of the gross value of the final goods and services in different sectors of economy such as industry, service, agriculture etc is acquired for the current year by determining the total production the was made during the specific time period. The value obtained in the gross domestic product. GDP is calculated using value added method or output method by summing the value of sales of goods and adjusting or subtra...