Answer:
Expenditure approach to calculate GDP.
Step-by-step explanation:
The terms represent the components of the expenditure approach used in calculating a country's Gross Domestic Product (GDP).
The expenditure approach sums up the total amount spent on goods and services produced within the country during a given period, typically a year.
The components of GDP using the expenditure approach are:
Consumption (C): the total spending by households on goods and services during the period.
Government spending (G): the total spending by the government on goods and services during the period.
Investment (I): the total spending on new capital equipment, buildings, and inventory by firms during the period.
Net Exports (NX): the difference between the value of exports and imports during the period.
The residual item in the expenditure approach is the difference between the total output (GDP) and the sum of the three components (C + G + I), which represents the net exports (NX).
So, the method used is the Expenditure approach to calculate GDP.