Expenditure Approach to GDP

​Watch the video that explains the Components of GDP

Match

Match the following GDP Components to the correct description

• Regular peoples spending

• Spending on a federal level

• Firms reinvesting into their companies

• International Trade (Exports & Imports)

Consumer Spending

Government Spending

Business Investment

Net Exports

• Consumer Spending

• Government Spending

• Business Investment

• Net Exports

Open Ended

Give an example of consumer spending INCREASING GDP

(example: Barbie buying more clothes)

Open Ended

Give an example of business investment increasing GDP

(example: Walmart opening a new location in San Leon)

Open Ended

Give an example of government spending DECREASING GDP

(example: Pres. Biden vetos a bill that would give more money to Education programs)

Open Ended

Give an example of Net Exports DECREASING GDP

(Example: America decides to not trade with any country that contains a U in their name)

Categorize

Options (16)

C(y-t)

G

I(ir)

NX(e)

Americans in September begin to buy Halloween decorations

President Biden signs a budget that gives more funds to Title One Schools based on attendance

Spirit Halloween restocks their shelves to prepare for the season

More imports are delivered to American ports from China

Changes in income and taxes affect this component

Changes in spending on a governmental level affects this component

Changes in our Exports & imports affect this component

Changes in interest rates affect how much firms reinvest into themselves

Organize these options into the right categories

Consumer Spending

Government Spending

Business Investments

Net Exports