Which approach adds up all spending on new domestic output?
Answer (1)
This is the expenditure approach, the most widely used method to measure GDP. It adds up what is spent on final goods and services by households (consumption), businesses (investment), government (government spending), and net exports (exports minus imports).In the Philippines, every time a consumer buys pandesal, a government agency builds a road, or an exporter sends bananas to Japan, those activities contribute to GDP using this approach.
