In the calculation of GDP  by Expenditure method what should be added from the following :

(A) Private Final Consumption expenditure

(B) Investment Expenditure

(C) Net imports

(D) Net exports

(E) Government Final Consumption Expenditure

Choose the correct answer from the options given below :

(A), (B), (D), (E) Only

The correct answer is option (2) : (A), (B), (D), (E) Only

Components of GDP (Expenditure Method):

(A) Private Final Consumption Expenditure: Spending by households on goods and services.

(B) Investment Expenditure:Spending by businesses on new capital goods (equipment, buildings) and inventories.

(D) Government Final Consumption Expenditure: Spending by government on goods and services (excluding transfer payments like social security).

(E) Net Exports: Exports minus Imports. Exports are a positive factor, adding to GDP, while imports represent a leakage of expenditure from the domestic economy.

Net Imports (C):  This is not directly added in the expenditure method. We use net exports (D), which considers both exports and imports. If exports are greater than imports (positive net exports), it contributes to GDP. If imports are greater than exports (negative net exports), it subtracts from GDP.