Let C represent consumption expenditure, S saving, I gross private domestic investment, G government expenditure on goods and services, and NX net exports of goods and services. Then GDP equals

Question

Quizplus · Accepted Answer

GDP is the total value of all final goods and services produced within a country's borders in a given time period. It is commonly calculated using the expenditure approach, which adds up all the spending in the economy. The components of GDP are consumption expenditure (C), gross private domestic investment (I), government expenditure on goods and services (G), and net exports of goods and services (NX). Therefore, the equation for GDP using the expenditure approach is GDP = C + I + G + NX.

Let C Represent Consumption Expenditure, S Saving, I Gross Private