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Topic: Business
Number of pages / Number of words: 9 / 2308
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According to Tucker (2005 p. 366) the Expenditure Approach measures GDP by adding all the spending of final goods during the period of time which consist of personal consumption (C), government spending (G), gross domestic investment (I) and net exports (X ? M). Of course these spending are adjusted accordingly for real GDP values...


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Of course these spending are adjusted accordingly for real GDP values. Accordingly, GDP is usually expresses by the formula below.

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

The Income Approach calculates GDP by adding all the income earned by households in exchange for the factors of production in the period of time (Tucker 2005, p...


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