Expenditure Method vs. Income Method . The income approach to measuring GDP is based on the accounting reality that all expenditures in an economy should equal the total income generated by the ...

GDP as examined using the Expenditure Approach is reported as the sum of four components. The formula for determining GDP is: C + I + G + (X - M) = GDP. C = Personal Consumption Expenditures.

Description topics Expenditure approach to GDP The way GDP is formed by underlying components in the so-called expenditure approach. In this approach the components are consumption by households, ...