Enter all values in the same unit (e.g. trillions, billions) for a consistent result.
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The expenditure approach is one of three standard GDP calculation methods (alongside income and production approaches) and is the most commonly taught in introductory economics — it should theoretically produce the same total as the other two methods for a given economy.
Worked Example
Example: Consumption $10T, Investment $3T, Government spending $2.5T, Exports $2T, Imports $2.8T. GDP = 10+3+2.5+(2−2.8) = $14.7 trillion.
Formula / Method
GDP = C + I + G + (X − M), where C = consumption, I = investment, G = government spending, X = exports, M = imports.
Worked Example
Example: Consumption $10T, Investment $3T, Government spending $2.5T, Exports $2T, Imports $2.8T. GDP = 10+3+2.5+(2−2.8) = $14.7 trillion.
Formula / Method
GDP = C + I + G + (X − M), where C = consumption, I = investment, G = government spending, X = exports, M = imports.