According to the expenditure approach,if Y is GDP,C is consumption,I is investment,G is government purchases,and NX is net exports,which of the following is the national income identity?
A)Y = C + I + G - NX
B)Y = C + I + G + NX
C)Y + C = I + G + NX
D)Y = (C + I + G)/NX
E)Y = C + I + G

Question

Quizplus · Accepted Answer

The national income identity according to the expenditure approach is Y = C + I + G + NX, where Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net exports. This equation shows that GDP is the sum of all expenditures in the economy, including consumption, investment, government purchases, and net exports. Therefore, option B is the correct answer.

According to the Expenditure Approach,if Y Is GDP,C Is Consumption,I