Net exports measure a country's trade balance by calculating the difference between the value of goods and services it exports and the value it imports. This metric directly impacts a nation's aggregate demand, which is the total spending within its
Expenditure Approach
Calculating GDP with the Expenditure Approach + Real Example
This guide dives into the expenditure approach, a cornerstone method for calculating Gross Domestic Product (GDP). Often used alongside the output approach, it offers a complementary perspective on an economy's health. We'll bypass extensive