expenditure method

• Total expenditure on final goods and services equals the value of final goods and services which equals factor incomes
•  GDP = Y = C + I + G + x - m
• Consumer expenditure C, government expenditure G, Investment expenditure I, exports of goods and services X
• Aggregate income earned from production of final goods (Y) equals the total amount paid for use of resources (wages,interest,rent and profit)

  Household savings (s) is income minus net taxes and consumption expenditure
• Investment has two components Gross domestic capital formation and additions or decreases to stock levels, we deduct expenditure on imports as these are on foreign production not domestic