All private consumption in a nation's economy is part of this expenditures approach for calculating the GDP is consumer spending.
The monetary value of all the goods and services that are produced in a country on a given period refers to the GDP. Using the GDP value, the economic growth of a country can be determined. The GDP of a country can be calculated with the help of three methods such as production, income, and expenditures.
The expenditure approach in the calculation of GDP includes the purchase of all goods and services in a given period. Things that are included in this approach are government spending, consumer spending, net exports and, business investment spending. In the given example, it is stated that the private consumption in the nation's economy is the part of this expenditures approach for calculating the GDP. The private consumption depends on the consumer spending.
