Which equation will always represent GDP in an open economy?
A) S = I - G
B) I = Y - C + G
C) Y = C + I + G
D) Y = C + I + G + NX

Name: Which equation will always represent GDP in an open economy? A) S = I - G B) I = Y - C + G C) Y = C + I + G D) Y = C + I + G + NX
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Question

Quizplus · Accepted Answer

In an open economy, GDP will include net exports (NX) which represents the difference between exports (X) and imports (M). Therefore, the equation that will always represent GDP in an open economy is Y = C + I + G + NX.

Which Equation Will Always Represent GDP in an Open Economy