Expenditure approach

Expenditure approach,

Definition of Expenditure approach:

  1. One of three methods for determining aggregate demand in an economy. The expenditure approach consists of adding up the total of government expenses, consumption, net exports and investment that make up the Gross National Expenditure. The income approach and the output approach use the total of consumption, savings and taxation to yield the same results.

Meaning of Expenditure approach & Expenditure approach Definition