Question

Identify GDP, discuss computing Personal consumption expenditures. And can calculate Net exports

Answer 1

--> gdp is nothing but total value of final goods and services produced in an economy within a year. Gdp can be calculated by various methods such as income method,value added method, expenditure method.

--> Through an expenditure method total output Y = C + I + G + (X-M) wherein C is personal consumption expenditure,I is gross private domestic investment,G is government expenditure and X is exports and M is imports.

--> personal consumption expenditure inlcudes both services and durable and non durable goods expenditure. Net exports means substituting imports from exports.