GDP = C + I + G + (X – M)
C = consumer spending on goods and services
I = business investment in capital goods, inventories, and residential construction
G = government spending on final goods and services
X = exports
M = imports
Subtract imports because they are included in C, I, or G but produced abroad
Add all final goods and services produced within a country during a specific period
Use current prices for nominal GDP
Use constant prices for real GDP
For the income approach, add wages, rent, interest, and profits
For the production approach, add value added across all industries
Ensure double counting is avoided by counting only final goods and services or value added