Question

Which method used to calculate GGDP

Answer 1

Answer:

The most commonly used GDP formula, which is based on the money spent by various groups that participate in the economy.

GDP = C + G + I + NX

C = consumption or all private consumer spending within a country’s economy, including, durable goods (items with a lifespan greater than three years), non-durable goods (food & clothing), and services.

G = total government expenditures, including salaries of government employees, road construction/repair, public schools, and military expenditure.

I = sum of a country’s investments spent on capital equipment, inventories, and housing.

NX = net exports or a country’s total exports less total imports.

Answer 2

GDP = C + I + G +NX

Explanation:

Gross Domestic Product (GDP) is a metric used to assess a country's economic health. There are three types of GDP formulas

1. Expenditure Approach

2. Income Approach

3. Production Approach.

In the above-stated formula,

C = All of the economy's private consumption/consumer spending. It encompasses both durable and nondurable items, as well as services.

I = All of a country's capital equipment, housing, and other investments.

G = The total amount of money spent by the government of the country. It covers government employee pay, construction, and upkeep, among other things.

NX= net country export minus net country import.