# Expenditure approach

(Expenditure Approach to GDP) Given the following annual information about a hypothetical country, answer questions a through d.

Billions of Dollars

Personal consumption expenditures $200

Personal Taxes 50

Exports 30

Depreciation 10

Government Purchases 50

Gross private domestic investment 40

Imports 40

Government transfer payments 20

a. What is the value of GDP?

b. What is the value of net domestic product?

c. What is the value of net investment?

d. What is the value of net exports?

#### Solution Summary

Characterize the expenditure approach.