The Expenditure Approach to Measuring GDP:
Add up the total amount at market prices that is spent on all final goods and services in a year.
Example: 1997 U.S. data in billions of 1997 (current) dollars
C: Consumption: $5,493.7
I: Investment: $1,256.0
G: Government: $1,454.6
EX: Exports: $965.4
IM: Imports: $1,058.8
GDP = C + I + G + EX - IM
= 5,493.7 + 1,256.0 + 1,454.6 + 965.4 - 1,058.8 = $8,110.9 billion
Nominal GDP is in current dollars.