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
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- 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
Practice GDP by spending with real numbers
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