The expenditure approach to GDP accounting includes:

Question

Quizplus · Accepted Answer

The expenditure approach to GDP accounting includes four components: consumption, investment, government spending, and net exports. Net exports measure the difference between exports (goods produced domestically and sold abroad) and imports (goods produced abroad and sold domestically). Therefore, net exports are included in the GDP calculation under the expenditure approach. Wages and salaries, net interest, and corporate profit are all part of the income approach to GDP accounting.

The Expenditure Approach to GDP Accounting Includes