Measuring of GDP - Expenditure - Expenditure Method

4 important questions on Measuring of GDP - Expenditure - Expenditure Method

Who are the four major buyers in the economy?

The four major buyers include households, firms, government, and foreigners.

What do households buy?

Households purchase goods like clothes and food, and services like haircuts.

What do firms invest in?

Firms spend on machines, factories, or storing goods as investments.
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What do foreigners do in the context of imports and exports?

Foreigners buy our exports and account for what we import.

The question on the page originate from the summary of the following study material:

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