Which of the following represents the national spending approach to splitting GDP?
A) Y = C + G + NX - M
B) Y = C + I + G
C) Y = C + I + G + NX
D) Y = C + I + G - NX

Question

Quizplus · Accepted Answer

The national spending approach to splitting GDP includes consumption (C), investment (I), government spending (G), and net exports (NX). Therefore, option C is the most comprehensive and accurate representation of this approach. Option A does not include investment, and option B does not include net exports, while option D subtracts net exports instead of adding them.

Which of the Following Represents the National Spending Approach to Splitting