The formula from the expenditure method indicates that GDP is equal to:
A)C + I G X M
B)C + I G + X M
C)C + I + G + X M
D)C + I + G + M X

Question

The formula from the expenditure method indicates that GDP is equal to:
A)​C + I G X M 
B)​C + I G + X M 
C)​C + I + G + X M 
D)​C + I + G + M X

Quizplus · Accepted Answer

The expenditure method states that GDP is equal to consumption (C) plus investment (I) plus government spending (G) plus exports (X) minus imports (M), or GDP = C + I + G + X - M. Therefore, choice C - C + I + G + X - M - is the correct option.

The Formula from the Expenditure Method Indicates That GDP Is