When finding GDP algebraically,what is the final,unique equation that can be used?
A) GDP = C + Ip + G + NX
B) GDP = AE + NX + T
C) GDP = C + I + G + NX
D) GDP = Y + T + G
E) GDP = C + I + NX

Question

Quizplus · Accepted Answer

The equation for GDP is generally accepted as GDP = C + I + G + NX, where C represents consumption, I represents investment, G represents government spending, and NX represents net exports. This equation reflects the components of GDP in terms of spending by households, firms, government, and foreign entities. While the other options listed may also be used to explain GDP, the equation in choice C is the most widely used and accepted.

When Finding GDP Algebraically,what Is the Final,unique Equation That Can