The expenditure method dictates that GDP is equal to C + I + G + (X - M).

Name: The expenditure method dictates that GDP is equal to C + I + G + (X - M).
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The expenditure method is one of the three ways to calculate GDP, and it adds up all the final goods and services produced within a country's borders. The formula for GDP using the expenditure method is C + I + G + (X - M), where C is consumption by households, I is investment by businesses, G is government spending, X is exports, and M is imports.

The Expenditure Method Dictates That GDP Is Equal to C