What is the equation for total expenditure in a closed economy?
A) Y = C + I + G
B) Im − Ex = C + I
C) Y = C + I + G + NX
D) Y + G = C + I − NX

Name: What is the equation for total expenditure in a closed economy? A) Y = C + I + G B) Im − Ex = C + I C) Y = C + I + G + NX D) Y + G = C + I − NX
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Question

Quizplus · Accepted Answer

In a closed economy, there are no exports or imports (NX = 0), so the equation for total expenditure is Y = C + I + G, where Y is GDP, C is consumption, I is investment, and G is government spending.

What Is the Equation for Total Expenditure in a Closed