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Expenditure Approach for Measuring GDP definitions

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  • Gross Domestic Product
    Total value of all final goods and services produced within a country during a year, reflecting economic productivity.
  • Final Goods
    Products that have completed production and are ready for consumption, not used as inputs for further manufacturing.
  • Expenditure Approach
    Method for calculating economic output by summing all spending categories: households, capital, government, and net exports.
  • Consumption
    Household spending on goods and services, such as groceries or car washes, representing a major component of economic activity.
  • Investment
    Capital spending on inventory, equipment, or buildings, excluding financial assets like stocks or bonds.
  • Government Spending
    Public sector purchases of goods and services, contributing to national economic output.
  • Net Exports
    Difference between a country's exports and imports, which can be positive or negative in GDP calculation.
  • Exports
    Goods and services produced domestically and sold to other countries, increasing national output.
  • Imports
    Goods and services purchased from abroad, subtracted from national output in GDP calculations.
  • Capital Investment
    Physical assets acquired for production, such as machinery or buildings, enhancing productive capacity.
  • Economic Productivity
    Measure of how efficiently resources are used to produce goods and services within a country.
  • Market Equilibrium
    State where total supply and demand in an economy are balanced, often analyzed using GDP data.
  • Economic Growth
    Increase in a country's output of goods and services over time, often tracked by changes in GDP.
  • Macroeconomic Performance
    Overall health and stability of a nation's economy, assessed using indicators like GDP.