Question

How to fiind out the percentages of GDP for each expenditures component. (Exports - Imports is...

How to fiind out the percentages of GDP for each expenditures component. (Exports - Imports is one component).

Could you please proviide your answer with an example?

Thanks

Homework Answers

Answer #1

According to the expenditure method, the component of GDP are consumption, investment, government expenditure and net export( export-import).

The percentage of GDP of each expenditure component will be calculated in the following way;

Consumption expenditure percentage of GDP = (Consumption expenditure/ GDP)*100

Investment expenditure percentage of GDP = (Investment expenditure/ GDP)*100

Government expenditure percentage of GDP=(Government expenditure/GDP)*100

Net export percentage of GDP=(Net export expenditure/GDP)*100

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