Question

Which of the following factors is/are accounted in the calculation of Gross Domestic Product of a country in the expenditure method?

• A. Private consumption
• B. Gross investments and government spending
• C. Net expenditure of the expenditure on export and import
• D. All of the above

Answer 1

The correct option is D All of the above

GDP by expenditure method:

GDP = Gross Private Consumption (C) + Gross Private investment (I) + Gross investment by government (G) + Net of export and import (X - M)

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