What is the formula for an open economy's GDP?
A) Y = C + I + G
B) Y = (C - T) + I + G
C) Y = C + I + G + S
D) Y = C + I + G + NX

Question

Quizplus · Accepted Answer

In an open economy, GDP is calculated by adding consumption (C), investments (I), government spending (G), and net exports (NX), where net exports are equal to exports minus imports. Therefore, the formula for an open economy's GDP is Y = C + I + G + NX.

What Is the Formula for an Open Economy's GDP