explain expenditure approach with an example
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Answer:
ᴛʜᴇ ᴇxᴘᴇɴᴅɪᴛᴜʀᴇ ᴀᴘᴘʀᴏᴀᴄʜ ɪs ᴀ ᴍᴇᴛʜᴏᴅ ғᴏʀ ᴄᴀʟᴄᴜʟᴀᴛɪɴɢ ᴀ ɴᴀᴛɪᴏɴ's ɢʀᴏss ᴅᴏᴍᴇsᴛɪᴄ ᴘʀᴏᴅᴜᴄᴛ (ɢᴅᴘ) ʙʏ ᴄᴏɴsɪᴅᴇʀɪɴɢ ᴛʜᴇ ᴘʀɪᴠᴀᴛᴇ sᴇᴄᴛᴏʀ, ɪɴᴠᴇsᴛᴏʀ, ᴀɴᴅ ɢᴏᴠᴇʀɴᴍᴇɴᴛ sᴘᴇɴᴅɪɴɢ ᴀs ᴡᴇʟʟ ᴀs ɴᴇᴛ ᴇxᴘᴏʀᴛs. ɢᴅᴘ ɪs ᴀ ᴍᴇᴀsᴜʀᴇ ᴏғ ᴛʜᴇ ᴛᴏᴛᴀʟ ᴠᴀʟᴜᴇ ᴏғ ɢᴏᴏᴅs ᴀɴᴅ sᴇʀᴠɪᴄᴇs ᴘʀᴏᴅᴜᴄᴇᴅ ᴡɪᴛʜɪɴ ᴀ ɴᴀᴛɪᴏɴ's ʙᴏʀᴅᴇʀs ᴀᴛ ᴛʜᴇ ᴄᴜʀʀᴇɴᴛ ᴍᴀʀᴋᴇᴛ ᴠᴀʟᴜᴇ.
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Explanation:
The expenditure approach is a method for calculating a nation's gross domestic product (GDP) by considering the private sector, investor, and government spending as well as net exports. GDP is a measure of the total value of goods and services produced within a nation's borders at the current market value.
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