GENERAL KNOWLEDGE

Detailed explanation-1: -National expenditure includes consumption expenditure, investment expenditure and government expenditure.

Detailed explanation-2: -The national income identity says that gross domestic product is given by consumption expenditures, plus investment expenditures, plus government expenditures, plus exports, minus imports. In short, this is written as GDP = C + I + G + EX − IM.

Detailed explanation-3: -In this National Income is measured as flow of goods and services. In this National Income is measured as flow of expenditure. We can calculate NI through Expenditure method as: National Income=National Product=National Expenditure.