Which of the following equations will always represent GDP in an open economy?
A)S = I - G
B)I = Y - C + G
C)Y = C + I + G
D)Y = C + I + G + NX

Question

Quizplus · Accepted Answer

The equation Y = C + I + G + NX represents GDP in an open economy as it includes all the components of spending, including net exports (NX). The other equations do not include net exports, which are an important component of GDP in an open economy.

Which of the Following Equations Will Always Represent GDP in an Open