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Why imports are subtracted in the expenditure approach to calculating GDP?

why imports are subtracted inthe expenditure approach to calculating GDP


Compared with the expenditure approach to calculating GDP the income approach is?

more accurate


What is the income approach compared with the expenditure approach to calculating GDP?

more accurate


What are the methods of calculating GDP?

expenditure approach and income approach & VALUE ADDED METHOD


How do economist calculate GDP for one year using the expenditure approach?

Economists have two methods of calculating GDP, the Expenditure approach and the Income approach. In calculating using the expenditure approach, economists add the market value of all domestic expenditures on "final goods" used within one year. (Final goods will not be resold or used to produce something new) The goods are broken into four categories: net exports, government expenditures, investment and consumption expenditures.


How are imports subtracted in the expenditure approach to calculating GDP, because?

Imports are subtracted in the expenditure approach to calculating GDP because they represent goods and services produced in other countries and are not part of the domestic production that contributes to the country's GDP. By subtracting imports, the calculation focuses on the value of goods and services produced within the country's borders, providing a more accurate reflection of the domestic economy's performance.


What is the most volatile asspect of expenditure in economics?

If you mean the expenditure approach to calculating GDP, then C+I+G+NX Investment is the most volatile, meaning that it changes the most with aggregate shocks to the economy. Some measures of consumtpion like durable goods are also volatile.


What are the different problem approaches in computing GNP?

Expenditure Approach and Income Approach.


Formulas to calculate national income used in economics in India?

how to compute national income. Through; expenditure approach, income approach, and input and output approach. Now for the expenditure approach you add G+I+C+(X-M) Income approach; addition of the factors of production


What are the 3 approaches to national income accounting?

The 3 approaches to national income accounting are the output approach, the income approach and the expenditure approach.


What are the three approaches of national income?

There are three approaches through which national income can be calculated including; output approach, income approach and expenditure approach.


- What is the expenditure approach to calculate GDP?

Gdp = c + i + g + (x - m)