![]() This is not an investment in the stock market or other investment vehicles. Investment Spending-any spending done by businesses.Ex: Little Caesar's pizza, haircut, car tune-up, etc. Consumer Spending-the value of any good or service purchased by a consumer.To calculate GDP, economists use four main components: ![]() The expenditures approach is the sum of all aggregate spending on all final goods and services within a country's borders in one year. The two main methods of calculating GDP are the expenditures approach and the income approach. We use GDP to compare ourselves to other countries, to see the impact of policy changes, and to compare our growth from year to year. GDP can be described as national income, and helps economists view how productive the economy is over time. GDP is the dollar value of all final goods and services produced within a country's borders in one year. One of the most important measures of the economy is Gross Domestic Product, or GDP. The firm obtained the resources needed to produce the computer from the factor market, and the flow ends back with Jim as a household in the economy. In this example, the circular flow starts with Jim as a consumer in the household sector, then moves to the product market where he purchases the computer from a firm.
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