In order to determine GDP using the expenditures approach, all spending on final goods and services, not intermediate goods, is added up.
This is further explained below.
What is GDP?
Generally, GDP calculates the monetary value of the final goods and services—those purchased by the consumer—produced in a nation during a specific time period.
In conclusion, The expenditures technique calculates GDP by adding up all expenditures on final products and services, not intermediate goods.
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