Real gross domestic product (GDP ... based on the expenditure approach and calculated using the following formula: GDP = C + G + I + NX (where C=consumption; G=government spending; I=Investment ...

Real GDP takes into account the effects of inflation ... of an economy and boosts employment levels. The net exports formula subtracts total exports from total imports (NX = Exports - Imports).

Let's look at the elements of this simple equation: GDP=C+I+G+NE. In Britain and the United States, personal consumption (C) has hit the buffers because much of it was underpinned by debt ...

This formula is known as the equation of exchange ... monetary supply at a rate that matches the growth of their real GDP. What Are the Main Assumptions of Monetarist Theory?