The national spending approach, also known as the expenditure approach, takes all the goods and services that go into GDP and splits them into consumption, investment, and government purchases. When GDP falls, this approach helps economists figure out why.

-----------------------------------------------------------------------------------------

Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8

Dictionary of Economics Course: http://bit.ly/2EWL3vW

Additional practice questions: http://bit.ly/2FjvzOU

Ask a question about the video: http://bit.ly/2HcbAlM

Help translate this video: http://bit.ly/2ov91Ef