LA Business Daily

Would disposable income and transfer payments be included in GDP? ?

I am suppose to be calculating GDP with the following data: Disposable personal income: 694 billion Consumption spending: 656 billion Net exports: 50 billion Government spending: 224 billion Investment spending: 226 billion Transfer payments: 121 billion In my opinion, the answer should be $ 1156 billion. Since it excludes disposable income and transfer payments. But is that correct?

Public Comments

1. Expenditure approach: GDP = C + I + G + NX = 656+224+226+50 = 1'156 billion Other components from list are not related for this calculation method, thus you are right..