In the basic equation of national income accounting, GDP = C + I + G + X - IM, the government directly controls _____ and influences _____ through fiscal policy.
A)G; C and I
B)T; G and C
C)C; X and M
D)I; G and T

Question

Quizplus · Accepted Answer

The government directly controls G (government spending) and influences C (consumption) and I (investment) through fiscal policy by adjusting taxes and government spending.

In the Basic Equation of National Income Accounting, GDP =