The GDP estimation method measuring the aggregate value of goods and services produced by the firms is called _______.

The correct answer is product method.

Key Points

•  Product Method:
  • Product or value added method is a way of computing the national income of a country.
  • This system is also known as output or inventory method. This method calculates national income by adding value to a product at every stage of its production.

Additional Information

• expenditure method
  • The expenditure method is a system for calculating gross domestic product (GDP) that combines consumption, investment, government spending, and net exports.
  • It is the most common way to estimate GDP. It says everything that the private sector, including consumers and private firms, and government spend within the borders of a particular country, must add up to the total value of all finished goods and services produced over a certain period of time. 
• consumption method
  • These consumption inventory methods offer a radically different method of accounting for a community's contribution to greenhouse gas emissions.
  • Traditional inventories evaluate the emissions associated with a diverse set of activities within a geographic area.​
• Income Method:
  • In the income method, the national income is measured by adding up the pretax income generated by the individuals and companies in the economy.
  • It consists of income from wages, rent of buildings and land, interest on capital, profits, etc.