Re: isi

Posted by lovekesh on May 11, 2012; 5:12am
URL: http://discussion-forum.276.s1.nabble.com/isi-tp7542957p7549225.html

Isn't consumption in expenditure approach of national accounting is expenditure on goods and services produced in the given period. If i take 600 as consumption, it was not produced in year 2, which should not form part of year 2 GDP. The idea of subtracting imports is to find the net expenditure on consumer goods and services produced in that year. And if your reasoning of adding 600 to consumption is correct , then using same logic, sale and purchase of old items will get included in year 2 GDP.