Use the table below to choose the correct answer. Personal consumption expenditures Government consumption and gross investment Rent income Net investment expenditures Gross imports Personal savings Gross exports Depreciation Gross domestic product equals

The formula for calculating Gross Domestic Product (GDP) is quite fascinating! It generally combines personal consumption expenditures (C), government spending (G), investments (I), and net exports (NX, which is gross exports minus gross imports). So, the equation can be stated as GDP = C + G + I + (X - M) where X is gross exports and M is gross imports. Now, here's a tip: a common mistake when calculating GDP is not adjusting for depreciation. Depreciation reflects the wear and tear on capital goods, which can lead to an overestimation of productive capacity. Always remember to factor in these elements to get an accurate economic measure!