An open economy's GDP can be expressed by
A)Y = C + I + G.
B)Y = C + I + G + T.
C)Y = C + I + G + S.
D)Y = C + I + G + NX.

Name: An open economy's GDP can be expressed by A)Y = C + I + G. B)Y = C + I + G + T. C)Y = C + I + G + S. D)Y = C + I + G + NX.
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Question

Quizplus · Accepted Answer

In an open economy, GDP (Y) is expressed as the sum of Consumption (C), Investment (I), Government Spending (G), and Net Exports (NX), which is the difference between a country's exports and imports. Therefore, the correct formula is Y = C + I + G + NX.

An Open Economy's GDP Can Be Expressed by