Expenditures Approach

Personal consumption expenditures (C)

Durable goods
Nondurable goods
Consumer expenditures for services
Domestic plus foreign goods produced

LO2
 Expenditures Approach

Gross private domestic investment (Ig)

Machinery, equipment, and tools
All construction
Positive and negative changes in inventories
Creation of new capital assets
Noninvestment transactions excluded

LO2
 Expenditures Approach
Gross Investment
- Depreciation
= Net Investment
Net
Investment
Gross
Investment
Depreciation

Stock
Consumption,
Stock of government of
Capital expenditures, Capital
and net exports
January 1 Years GDP December 31
LO2
 Expenditures Approach
Government purchases (G)
Expenditures for goods and services
Expenditures for publicly owned capital
Excludes transfer payments
Net exports (Xn)
Add exported goods
Subtract imported goods
Xn= exports (X) imports (M)
LO2
GDP = C + Ig + G + Xn