In the given expression of GDP according to the expenditure method, which of the following represents the aggregate imports expenditure incurred by the economy?

C + I + G + X - M

The correct answer is M.​Key Point

Expenditure method of income measurement:

• The expenditure method is a system for calculating gross domestic product (GDP) that combines C + I + G + X - M where consumption (C), investment(I), government spending(G), and net exports(X-M) where M is import and X is export.
• It is the most common way to estimate GDP. It says everything that the private sector, including consumers and private firms, and government spending within the borders of a particular country, must add up to the total value of all finished goods and services produced over a certain period of time. This method produces nominal GDP, which must then be adjusted for inflation to result in the real GDP.

Additional Information 

1. Product Method:
   • The product or value-added method is a way of computing the national income of a country.
   • This system is also known as the output or inventory method. This method calculates national income by adding value to a product at every stage of its production.
2. Income Method:
   • In the income method, the national income is measured by adding up the pretax income generated by the individuals and companies in the economy.
   • It consists of income from wages, rent of buildings and land, interest on capital, profits, etc.