Principles of Macroeconomics / Unit 3 MAC 0202 short lesson, about 20 seconds
The Expenditure Approach
Captions available
The idea
Add what everyone spends: consumption, investment, government purchases, and net exports. GDP equals C plus I plus G plus exports minus imports.
In practice
Four spenders: households, firms, government, and the rest of the world.
Where people slip
Imports are subtracted because they were produced abroad, not because buying them harms the economy.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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