Explanation:

The total level of expenditure in a national economy which is equivalent to its total level of output and the total level of income is known as 'national expenditure'. It includes all type of expenditures from consumption to investment including the ones done by the Government.

Where,
C = Consumption by residents of the nation
I = Investment
G = Government spending
X = Exports
M = Imports
Or National income = C + I + G + NX
Where,
Net exports (NX) = Exports – Imports
However, the expenditure method excludes the expenditures that are done on the purchase of shares, bonds, and second-hand goods.

Hence option 4th is correct.