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In this approach GDP is calculated as the sum of four categories of expenditures on output and this includes : net exports,government purchase,gross private investment and gross private consumption expenditure.
1.Allows government to get tax from labor-income exchange
2.Allows the government to involve its budget when determining GDP.
3.It is more accurate in areas with a wide range of income
This method is applicable in countries with a wide gap between rich and poor.
One advantage to the expenditure approach is the ability to see how people and governments spend their money. Consumption is usually the largest category, while exports tend to be the smallest. Shifts in investment and government spending can reveal changing market conditions and social attitudes.
Its flaws is that it does not count goods and services produced for personal use.
There is no way, for example, to add child-rearing to any of the four
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