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The Components of GDP
GDP based on the expenditure approach:
GDP = C + I + G + (X – M)
C = Consumer spending on final goods and services
I = Gross private domestic investment, which includes business investment in capital goods and changes in inventory (inventory investment)
G = Government spending on final goods and services
X = Exports
M = Imports
123The Graphic Presentation of Data:x-axis and the absolute frequency for that interval on the y-axisthe observations lie below a certain value.
89The Components of GDP:The Components of GDP:servicesM = Imports
304Balance of Payment Components:1 Merchandise trade.;transportation,engineering,goldand foreign liabilities reported by the reporting country’s banking sector.
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