In GDP, why is government spending a different factor? via /r/economy


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

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