Question

final consumption expenditure 1200 gross domestic fixed investment 600 govt fuxed investment 200 closing stock 300 opening stock 100 exports 800 imports 3000 deperciation 200 net factor income from abroad 130 net indirect taxes 80​

Answer 1

Answer:

Expenditure Method of National Income

The expenditure method of calculating National Income or Gross Domestic Product takes into account the final goods and services produced in a country during a period of time.

The formula for calculating national expenditure is

National Income = C + I + G + (X−M)

Where,

C = Consumption by residents of the nation

I = Investment

G = Government spending

X = Exports

M = Imports

Or  National Income = C + I + G + NX

Where,

Net Exports (NX) = Exports – Imports

 

However, the expenditure method excludes expenditures that are done on purchase of shares and bonds and second hand goods.