Post 11

Formula for calculating GDP.

Step One: Calculate consumer spending

Step Two: Calculate investments

Step Three: Calculate government purchases

Step Four: Calculate net exports by subtracting imports from exports.

Step Five: Add them all together

M= C + I + G + NX (Where M equals both GDP and the national income, C equals consumer spending, I equals investments, G equals government purchases, and NX equals net exports.)

RULES:

1)     Must be made in your country

2)     Must be a final good or service

3)     Must be produced within country’s border