Expenditures Approach

90% of question asking for Gross Domestic Product (GDP) will require you to use this method:

1. Consumer Spending - purchases of final good and services by individuals.
2. Business Investment - Business spending on tools and equipment.
3. Government Spending - government spending on goods and services – NOT Transfer Payments.
4. Net Exports - Exports (X) - Imports (M)

GDP (Y) = C + I +G+ (X- M)

相关笔记

Three Ways of Calculating GDP