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3 years ago

Which is the correct formula for the expenditures approach to GDP ?

Social Studies

1 answer:

Dimas [21]3 years ago

4 0

The correct answer would be, GDP = Government Expenditures + Exports + Investments + Consumption - Imports.

The correct formula for expenditures approach to GDP is equal to Government Expenditures + Exports + Investments + Consumption - Imports.

Explanation:

GDP stands for Gross Domestic Product. The total output, or total number of goods or services produced within a country is called as the Gross Domestic Product.

There are three ways of calculating the GDP. One is Expenditure approach, second one is Output approach and the third one is Income approach.

When calculating Gross Domestic Product's Expenditure's Formula, it will be calculated by summing all Government Expenditures, Exports, Investments and consumption and then subtracting imports from them.

Learn more about GDP expenditure approach at:

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