Simple view of expenditures
In an economy, households receive wages that they then use to purchase final goods and services. Since wages eventually are used in consumption (C), the expenditure approach to calculating GDP focuses on the end consumption expenditure to avoid double counting. The income approach, alternatively, would focus on the income made by households as one of its components to derive GDP.
Source
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:
