ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The formula for GDP is: GDP = C + I + G + (X-M). C is consumer spending, I is business investment, G is government spending, and (X-M) is net exports.

Detailed explanation-2: -Thus investment is everything that remains of total expenditure after consumption, government spending, and net exports are subtracted (i.e. I = GDP − C − G − NX ).

Detailed explanation-3: -United States Investment: % of GDP United States Investment accounted for 21.2 % of its Nominal GDP in Dec 2022, compared with a ratio of 21.2 % in the previous quarter. US investment share of Nominal GDP data is updated quarterly, available from Mar 1947 to Dec 2022, with an average ratio of 22.3 %.

Detailed explanation-4: -GDP can be measured in three different ways: the value added approach, the income approach (how much is earned as income on resources used to make stuff), and the expenditures approach (how much is spent on stuff).

Detailed explanation-5: -GDP = GDP at market price – depreciation + NFIA (net factor income from abroad) – net indirect taxes. Income Approach : The Income approach of GDP calculation is based on the total output of a nation with the total factor income received by residents or citizens of a nation.