In 2 or 3 sentences explain how to calculate gross domestic product using the expenditure approach.

The expenditure approach to gross domestic product not only measure’s the aggregated output and income of an economy, but also their expenditure on goods and services. This includes consumption, investment, government purchases and next exports (exports - imports). Therefore, the formula for gross domestic product (Y) using the expenditure approach is Y = C + I + G + NX.