Question

Explain in the brief the various components of expenditure method class 12 Chapter 4 economics​

Answer 1

Answer:

There are four main aggregate expenditures that go into calculating GDP: consumption by households, investment by businesses, government spending on goods and services, and net exports, which are equal to exports minus imports of goods and services.

Answer 2

Answer:

Y = C+ I + G + NX

where C = Consumption

I = Investment

G = Government Expenditure

NX = Net Exports (Exports - Imports)

Explanation:

Factor income earned by factors of production is spent in the form of expenditure on purchase of goods and services produced by firms.