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How to calculate GDP by spending

The GDP by spending formula, with plain worked examples you can check yourself.

GDP by spending = C + I + G + (X − M)

Worked examples

C = 700 · I = 200 · G = 400 · X = 200 · M = 100GDP by spending = 1,400
C = 500 · I = 100 · G = 200 · X = 200 · M = 150GDP by spending = 850
C = 800 · I = 300 · G = 300 · X = 100 · M = 100GDP by spending = 1,400

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Money & Prices.

Related terms

GDPInflationPrice elasticityDeflationMonetary policyMoney supply

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