Economics
Basic

GDP (Expenditure Approach)

National output measured as total spending by households, firms, government and net exports.

Formula

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

Variables

CConsumption
IInvestment
GGovernment spending
XExports
MImports

Example

C400 + I100 + G120 + (80−60) = $640B

Did You Know?

Consumption typically makes up the largest slice of GDP — around two-thirds in many economies.

gdpmacronational accounts