The expenditure approach is a method used to calculate a country's gross domestic product (GDP) by adding up all expenditures made in the economy over a specific period. This includes spending by households, businesses, and the government, as well as net exports, which are the value of a country's exports minus its imports. In this approach, the main components are consumption (C), investment (I), government spending (G), and net exports (NX). The formula can be summarized as: GDP = C + I + G + NX. This method provides a clear picture of economic activity by focusing on where money is being spent.