Question

The major components of a country's economy are consumption (C), investment (I), government spending (G), exports, and imports. Which of the following is the correct equation for determining GDP?

Choose one:
A. C + I + G + exports - imports
B. C + I + G
C. C + I - G
D. C + I + G - exports - imports
E. C + I + G - exports + imports
F. C + I + G + exports + imports

Answer 1

Answer:The correct equation for determining GDP (Gross Domestic Product) is: B. C + I + G

Explanation:GDP is a measure of the total value of all final goods and services produced within a country's borders during a specific period. The components of GDP are consumption (C), investment (I), and government spending (G). This equation represents the basic expenditure approach to calculating GDP.