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Aggregate expenditure of household sector, firms and governments, of an economy is the expenditure, on goods and services produced by, (1) domestic firms and (2) foreign, firms. Expenditure on the firms in, the rest of the world is called import, expenditure. This is not the expenditure on goods produced in the domestic economy. Therefore, to find>the, expenditure on the GDP produced, by domestic firms, deduct import, expenditure from total expenditure., , , , The aggregate final consumption |, , expenditure of the economy (C) is the, sum of final consumption expenditure, on goods and services produced in, , N, the domestic economy (3c,] and, , fel, final consumption expenditure on, , goods and services imported (C_)., Therefore aggregate final consumption, expenditure is, , N N KS, CE C+C. «. > C, =C-C,, (2), i=] i=1, C -C, is the final consumption, expenditure on domestic goods and, services., , Similarly, aggregate final investment expenditure of the economy ( J), is the sum of final investment expen, N, diture on domestic firms (31. and, isl, the final investment expenditure on, imported investment goods (J). So, aggregate final investment expenditure, is ; N N, revel * p= iat, (3), , isl], , Economics = II, , , , I-1,,18 the final investmen;:, expenditure on capital goods produced, in the domestic territory. The aggre., gate government expenditure of the, country (G) is the sum of final government expenditure on domestic firms, (> G, | and final government expendi, f=] :, ture on foreign goods and services (G ),, | This is the import expenditure of the, “Government. Therefore Government, , aggregate expenditure is, N. N, G=)G,+G,,-. )}G,=G-G, (4), i=1 : f=1, , G-G,is the Government expenditure on «lomestic firms. Under, expenditure method, we know that, GDP is the aggregate final expenditure, received by all the firms in the domestic, economy. Symbolically,, , GDP = ¥ RV, = eC, + S1 + 3G, + 3X, fel tal Tol tol, , Yoh, 1 L 1 v, =C-C,+1-1,4+G-G,,+X, , =C+I+G+X-C,-1,-Gn, = CtI+G+ X-(C_+1,,+G,,), , =C+I+G+xX-M, , M=C,,+1,,+G,, is the total import, expenditure of the economy., , N, Gtr 2 RV, =O4i1a+x-M), , This is the GDP as per expendituré, method,, , (3) Income Method, / nder income method GDP :§, , calculated by adding together all th©