What is the expenditure approach to calculating GDP?

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What is the expenditure approach to calculating GDP?

The expenditure approach to calculating GDP is a method that measures GDP by summing up the total spending on final goods and services within an economy during a specific time period. It includes four main components: consumption expenditure by households, investment expenditure by businesses, government expenditure on goods and services, and net exports (exports minus imports). By adding up these components, the expenditure approach provides an estimate of the total value of goods and services produced within an economy.