Question

In three or four sentences, explain how to calculate Gross Domestic Product using the expenditure approach.

Answer 1

GDP stands for gross domestic product and is a measurement of all the goods and services a nation produces in a year. GDP is often used in economics to compare the economic output of countries. Economists calculate GDP using two main methods: the expenditure approach, which measures total spending and the income approach, which measures total income. The CIA World Factbook website provides all the data necessary to calculate GDP of every nation in the world. is that what u mean??

Answer 2

The Gross Domestic Product is a measurement of the economic activity of the countries in a certain period of time.

GDP can be calculated by aggregate value, by income or by the perspective of expenditure, which is the most traditional. GDP will be the sum of Consumption + Investments + Government Expenses + Net Exports, as the formula below:

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