Explain Gross Domestic Expenditure, Total Domestic Expenditure and Total Final Expenditure

Gross Domestic Expenditure, Total Domestic Expenditure and Total Final Expenditure 

 Gross Domestic Expenditure( GDE)

GDE stands for Gross Domestic Expenditure. It measures the total amount of expenditure made on final goods and services produced within a country's borders. 

The formula for GDE of national income is:

GDE = C + I + G + (X-M)

where:

C = Consumer spending

I = Investment made by businesses

G = Government spending

X = Exports

M = Imports

In simpler terms, GDE is the sum of consumption spending, business investment, government spending, and net exports (exports minus imports).

Total Domestic Expenditure( TDE)

Total domestic expenditure is the sum of all spending within a country's economy, including spending on goods and services by households, businesses, and governments. It is calculated using the following formula:

Total domestic expenditure = Consumption expenditure + Investment expenditure + Government expenditure 

Consumption expenditure includes spending by households on goods and services, while investment expenditure includes spending by businesses on capital goods such as machinery, equipment, and buildings. Government expenditure includes spending by governments on goods and services, such as public infrastructure, education, and health care. 

Total Final Expenditure (TFE)

Total final expenditure of national income is the sum of the final goods and services produced within a country, including spending on the goods and services by households, businesses, and governments. It is calculated using the following formula:

Total final expenditure = Consumption expenditure + Investment expenditure + Government expenditure + exports

This formula is the same as that used to calculate total domestic expenditure with a slight difference. However, the difference is that total final expenditure only includes the final goods and services produced within a country including expenditure on exported goods and services, while total domestic expenditure includes all spending within a country.