Using the Expenditure Method, Gross Domestic Product (GD

GDP can be measured using three equivalent approaches. The Expenditure Method formula is: GDP = C + I + G + (X − M), where C = Private Final Consumption Expenditure, I = Gross Fixed Capital Formation plus change in inventories, G = Government Final Consumption Expenditure, X = Exports, and M = Imports. Option D describes the Value Added (Production) Method. Option E describes the Income Method (sum of all factor incomes — wages, profits, rents, interest). Option C defines the relationship between GNP and GDP. The Expenditure Method is the most commonly tested approach and directly captures all spending on final goods and services in the economy.