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What are the four major expenditure components? Knoxville

Published date: December 18, 2025
  • Location: Knoxville, Knoxville, Tennessee, United States

The four components of expenditure, used to calculate Gross Domestic Product (GDP) via the expenditure approach, are Consumption (C) by households, Investment (I) by businesses, Government Spending (G), and Net Exports (X-M) (exports minus imports). These four areas represent all final spending in an economy, totaling GDP: GDP = C + I + G + (X - M).  


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