Question

To derive GDP using the expenditure approach, we must look at each of the separate components of expenditures and then add them together. These components are_______

Answer 1

The components of aggregate expenditure for calculating GDP using the expenditure approach include consumption, investment, government spending, and net exports.

Step-by-step explanation:

Components of Aggregate Expenditure for Calculating GDP

The components of aggregate expenditure for calculating GDP using the expenditure approach include:

• Consumption: This refers to the spending by individuals and households on goods and services.
• Investment: This refers to the spending by businesses on capital goods, such as machinery and equipment.
• Government Spending: This refers to the spending by the government on goods and services.
• Net Exports: This refers to the difference between exports and imports.