In GDP, why is government spending a different factor?
In order to calculate GDP we use:
Consumption + Investment + Government spending + (Exports – Imports)
But I don't understand why government spending should be considered a different factor, why not use this instead:
Consumption + Investment + (Exports – Imports)
And account for government consumption and investment in each respective category? Why set government appart?
Submitted May 07, 2017 at 03:36AM by _ohHimark
via reddit https://www.reddit.com/r/economy/comments/69q5oz/in_gdp_why_is_government_spending_a_different/?utm_source=ifttt