4.3.3 The Components of GDP GDP(E=C+I+G+X-M C-Consumption spending by households on goods and services, with the exception of purchases of new housing >I-Investment spending on capital equipment, inventories, and structures including household purchases of new housing G-Government purchase spending on goods and services by local, state, and federal government X-EXport expenditure spending on domestically produced goods by foreigners M-Import expenditure spending on foreign goods by domestic residents4.3.3 The Components of GDP ➢ GDP(E) = C+I+G+X-M ➢ C- Consumption ⚫ spending by households on goods and services, with the exception of purchases of new housing ➢ I- Investment ⚫ spending on capital equipment, inventories, and structures, including household purchases of new housing ➢ G- Government purchase ⚫ spending on goods and services by local, state, and federal government ➢ X- Export expenditure ⚫ spending on domestically produced goods by foreigners ➢ M- Import expenditure ⚫ spending on foreign goods by domestic residents