<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Gross Domestic Product (GDP) is the most important measure of economic activity in a country. It represents the total value of all goods and services produced in a particular country in a given period. GDP can be calculated using three methods, namely, the production approach, the income approach, and the expenditure approach. In this paper, we will focus on the Expenditure Method. The Expenditure Method of calculating GDP involves adding up the total value of all final goods and services purchased by the four groups of spending agents: households, firms, government, and foreign buyers. The purpose of this paper is to discuss how the components of GDP using the Expenditure Method influence GDP. Specifically, we will explore the relationship between each component of GDP and GDP as a whole, considering also the impact that inflation has on the real growth of the economic activity, and which is the real trend of this macroeconomic result indicator.</p>
</abstract>

Gross Domestic Product (GDP) is the most important measure of economic activity in a country. It represents the total value of all goods and services produced in a particular country in a given period. GDP can be calculated using three methods, namely, the production approach, the income approach, and the expenditure approach. In this paper, we will focus on the Expenditure Method. The Expenditure Method of calculating GDP involves adding up the total value of all final goods and services purchased by the four groups of spending agents: households, firms, government, and foreign buyers. The purpose of this paper is to discuss how the components of GDP using the Expenditure Method influence GDP. Specifically, we will explore the relationship between each component of GDP and GDP as a whole, considering also the impact that inflation has on the real growth of the economic activity, and which is the real trend of this macroeconomic result indicator.

Tracking Economic Growth: A Correlation Analyse on the Determinants of Gross Domestic Product

International conference KNOWLEDGE-BASED ORGANIZATION

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Gross Domestic Product (GDP) is the most important measure of economic activity in a country. It represents the total value of all goods and services produced...

Tracking Economic Growth: A Correlation Analyse on the Determinants of Gross Domestic Product

Published Online: Jul 20, 2023

Page range: 24 - 29

DOI: https://doi.org/10.2478/kbo-2023-0031

Keywords
GDP, economic development, consumption, inflation, expenditure

© 2023 Cristina Maria Bătusaru et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Tracking Economic Growth: A Correlation Analyse on the Determinants of Gross Domestic Product

Published Online: Jul 20, 2023

Page range: 24 - 29

DOI: https://doi.org/10.2478/kbo-2023-0031

KeywordsGDP, economic development, consumption, inflation, expenditure

© 2023 Cristina Maria Bătusaru et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
GDP, economic development, consumption, inflation, expenditure