📈The expenditure approach is used to calculate GDP based on spending.
💰Consumer spending is the largest component of GDP and drives the economy.
💼Investment spending refers to spending by businesses on physical capital.
🏛️Government spending includes expenditures from federal, state, and local governments.
🌍Net exports are calculated by subtracting imports from exports.
What is the expenditure approach?
—The expenditure approach is a method used to calculate GDP based on spending.
Which component of GDP is the largest?
—Consumer spending is the largest component of GDP and is a major driver of the economy.
What is investment spending?
—Investment spending refers to spending by businesses on physical capital like equipment and infrastructure.
What does government spending include?
—Government spending includes expenditures from federal, state, and local governments on various programs and infrastructure.
How are net exports calculated?
—Net exports are calculated by subtracting imports from exports.
00:00[Music]
00:05The expenditure approach is used to calculate GDP based on spending.
00:30Consumer spending is the largest component of GDP and drives the economy.
01:20Investment spending refers to spending by businesses on physical capital.
01:55Government spending includes expenditures from federal, state, and local governments.
02:23Net exports are calculated by subtracting imports from exports.
