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

Question

Quizplus · Accepted Answer

GDP (Gross Domestic Product) is calculated as the sum of consumption expenditure (C), gross private domestic investment (I), government expenditure on goods and services (G), and net exports of goods and services (X - M). Saving (S) is not directly included in the calculation of GDP, as it is part of investment.

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