No, they are not.
1. Expenditure approach
The economy is divided into four sectors: household, business, government, and foreign sector.
C: Consumption is the expenditures of the household sector. It includes spending on 1) durable goods which last for more than one year, 2) non-durable goods, and 3) services.
I: Investment is the expenditure of the business sector, including 1) purchases of new capital goods which are equipment or tools that aids in the production process, 2) changes in business inventories, 3) purchases of new residential housing.
G: Government Purchases is the expenditure of the public sector, such as education and defense expenses. Transfer payments are not included. If Government’s expenditure is greater than taxes collected from business and household sector, government is having a deficit; if government’s expenditure is smaller than the taxes collected, government is having a surplus; if the two amounts are equal, government’s budget is balanced. When there is a budget deficit, government needs to borrow debt from the business, household or the foreign sectors. Government’s debt is usually higher in recession than in an expansion phrase of the business cycle because government needs funding to finance their deficit.
GDP COMPUTATION