GDP from the expenditure side is equal to the sum of

Question

Quizplus · Accepted Answer

GDP from the expenditure side consists of four components: C (private consumption), I (investment), G (government spending), and NX (net exports). To calculate GDP from the expenditure side, we add up these four components: GDP = C + I + G + NX. Net exports is calculated as exports minus imports (X - M). Therefore, we can rewrite the equation as GDP = C + I + G + (X - M), which is equivalent to choice C.

GDP from the Expenditure Side Is Equal to the Sum