Which of the following equations correctly measures GDP in an economy?
A)GDP = C + I + G + X
B)GDP = C + net I + G + NX
C)GDP = C + I + G + NX
D)GDP = C + G + I - taxes

Question

Quizplus · Accepted Answer

GDP (Gross Domestic Product) is calculated as the sum of consumption (C), investment (I), government spending (G), and net exports (NX), which is exports (X) minus imports (M). Therefore, the correct formula is GDP = C + I + G + NX.

Which of the Following Equations Correctly Measures GDP in an Economy