Both an increase in and an increase in can contribute to economic growth by increasing the gross domestic product.

Exports and Government Expenses

Explanation:

These two factors contribute to the GDP of a country directly. Exports includes all goods and products that are extended and sold to the international world. The more a country exports, the higher its GDP climbs.

Government expenses on the other hand includes the summation of all expenses of the government extended as salaries to the government servants or any investment.

The formula for GDP is as follows:

Y = C + I + G + (X − M)

Where Y represents GDP

C represents consumption

I represents investment

G represents government spending

X represents exports

M represents imports

As evident, greater values of G and X will yield a higher GDP.

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