According to the expenditure approach,if Y is GDP,C is consumption,I is investment,G is government purchases,and NX is net exports,the national income identity can be written as:
A)Y = C + I + G.
B)Y = C + I + G - NX.
C)Y + C = I + G + NX.
D)Y = (C + I + G)/NX.
E)Y = C + I + G + NX.

Question

Quizplus · Accepted Answer

The expenditure approach to calculating GDP is given by the formula Y = C + I + G + NX, where Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net exports (exports minus imports).

According to the Expenditure Approach,if Y Is GDP,C Is Consumption,I