The four main categories of spending included in the expenditure approach to calculating GDP are personal consumption, gross private domestic investment, government purchases, and net exports.

Question

Quizplus · Accepted Answer

This statement is true. The expenditure approach to calculating GDP is based on the equation GDP = C + I + G + NX, where C is personal consumption, I is gross private domestic investment, G is government purchases, and NX is net exports.

The Four Main Categories of Spending Included in the Expenditure