According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net exports, the national income identity can be written as:
A) $Y + C - G = I + N X$
B) $$Y - C = I + G - N X$$
C) $Y - C - G - I = N X$
D) $Y = ( C + I + G ) / N X$
E) $Y = C + I + G$

Question

Quizplus · Accepted Answer

The expenditure approach to GDP is given by the formula $Y = C + I + G + NX$. Rearranging this to isolate NX gives $Y - C - G - I = NX$.

According to the Expenditure Approach, If Y Is GDP, C Y+C−G=I+NXY + C - G = I + N XY+C−G=I+NX

According to the Expenditure Approach, If Y Is GDP, C $Y + C - G = I + N X$