The expenditure approach for the calculation of GDP includes spending on:

Question

Quizplus · Accepted Answer

The expenditure approach for the calculation of GDP includes spending on consumption, gross private domestic investment, government spending for goods and services, and net exports. This means that GDP is calculated by adding up the total spending by households, businesses, governments, and foreign buyers on goods and services produced within a country's borders. Net exports are also included in this calculation, which means that the value of exports minus the value of imports is subtracted from the total expenditure to account for the amount of goods and services that are produced domestically but consumed by foreigners, and the amount of goods and services that are produced abroad but consumed domestically.

The Expenditure Approach for the Calculation of GDP Includes Spending