We know what GDP measures. List and discuss the benefits of using the expenditure approach to measuring GDP. What does it measure well, and what things are not measured by GDP but are still important in our lives?
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The expenditure approach take into account the money used in an economy to make purchases and helps in determining national income which is obtained because of goods produced and money utilized in purchasing these goods. This method can only measure paid labor related economic while the things such as charity wouldn't show up in calculations. It doesn't includes goods manufactured for personal use. All these factors can skew the figures and calculations and these transitions wouldn't show up in GDP change.Please let me know if you need any clarification. I'm always happy to answer your questions.