Help with macroeconomic

Economics
Tutor: None Selected Time limit: 1 Day

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? Need about 3 sentences please and no copying

Jul 25th, 2015

Thank you for the opportunity to help you with your question!

 Expenditure approach is  the easiest to collect the data. There are some   categories  of expenditure approach to calculate GDP. These are   

  1)  Gross Private Investment (I)  : That consist all the investment like fixed, Inventory,Residential                  2) Gross Private Consumption Expenditures(C)  : That consist all the goods and services purchased by                                                                                             households 

3 ) Government Purchases (G) : that consist all the expenditure on new goods and service by the local,                                                            state, and federal government.
4)  Net Exports (X - M) :  X =  foreign country's spending on the country's goods. 

                                          M =  Country's spending on foreign goods.

GDP =  C + I + G + (X-M)

 

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 25th, 2015

sry I forget to write the " things are not measured by GDP but are still important in our lives"

sending in  5 minutes 

Jul 25th, 2015

GDP  measures the economy of any country. it's a good indicator of improving quality of life. 

but still something is missing  in GDP 

like GDP does not take into account the working hours,  leisure time available or whether the income is equality distributed across the economy . Due to this GDP can't measure the quality of our lives.Therefor this thing should take into consideration during calculation of GDP.     


 

Jul 25th, 2015

I hope it will be helpful !!

If you want further dissuasion please let me know. 

Thank you !!

Jul 25th, 2015

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Jul 25th, 2015
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Jul 25th, 2015
Dec 9th, 2016
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