All final goods and services that make up GDP can be expressed in the form:

Question

Quizplus · Accepted Answer

The correct formula for calculating GDP is GDP = C + I + G + (X - M), where C is consumption, I is investment, G is government spending, X is exports and M is imports. This formula takes into account all final goods and services produced within a country's borders, including those consumed domestically (C), invested in (I), and purchased by foreign countries (X - M). Choice A is not correct because it does not include investment (I). Choice B is incorrect because it implies that exports and imports cancel each other out, which is not always the case. Choice D does not account for consumption.

All Final Goods and Services That Make Up GDP Can