Step 1: Calculate Consumption expenditures
Step 2: Calculate Government purchases
Step 3: Determine Gross private domestic investments
Step 4: Calculate Net exports
Step 5: Put it all together
GDP = consumption + gross investment + government spending + (exports − imports)
GDP = C + I + G + (X-M).
Rules:
-Final Output - Only value the final goods or services when calculating GDP
-Current year - Does not include used cars or secondhand clothing
-Output produced within a national border - Does not include products made outside the US
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