Gross Domestic Product is equal to the sum of consumption expenditure, investment, net exports, and __________.

Question

Quizplus · Accepted Answer

Gross Domestic Product (GDP) is the total value of goods and services produced within a country's borders over a specific period of time. GDP is calculated by summing up four different components: consumption expenditure (C), investment (I), government expenditures on goods and services (G), and net exports (NX). The correct option that completes this equation is B, which represents government expenditures on goods and services. Therefore, the formula for GDP is GDP = C + I + G + NX.

Gross Domestic Product Is Equal to the Sum of Consumption