In an open economy GDP is the sum of ________.

Consumption, Gross Investment, Government expenditure, Net export

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Consumption, Gross Investment, Government expenditure, Net import

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Consumption, Gross Investment, Government subsidy, Net export

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Consumption, Gross Investment, Net export, Personal saving

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Solution

The correct option is A Consumption, Gross Investment, Government expenditure, Net export
The GDP is calculated using the formula
$G D P = C + I + G + X - M$

Where:
C = Consumption
I = Gross Investment
G = Government expenditure
X-M = Net export

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Similar questions

Q. For open economy aggregate demand is equal to Consumption + Investment + Government expenditure.

Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfer) is 100 and consumption is given by C = 100 + 0.75y

(i) What is the level of equilibrium income?

(ii) Calculate the value of the government expenditure multiplier and the tax multiplier.

(iii) If the government expenditure increases by 200, find the change in equilibrium income.

From the data below, calculate the GDP at market price. $\begin{matrix} Items & (in lakh) Gross Investment & 90 Exports & 40 Imports & 30 Private Consumption Expenditure & 350 Government Purchase of Goods & 60 Government Purchase of Services & 40 Inventory Investment & 50 \end{matrix}$

8. Consider the following statements with respect to Gross Domestic Product (GDP):

1. It is the value added by all the firms in the economy

2. It is the final value of goods and services produced in the economy

3. It is the sum of final consumption and investment expenditure by the household, private and government sector and net of exports and imports

4. It is the income received by the four factors of production

Select the correct answer

Q12. Consider the following statements with respect to Gross Domestic Product (GDP):

1. It is the value added by all the firms in the economy.

2. It is the final value of goods and services produced in the economy.

3. It is the sum of final consumption and investment expenditure by the household, private and government sector and net of exports and imports.

4. It is the income received by the four factors of production.

Select the correct answer using the code given below.

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In an open economy GDP is the sum of ________.

The correct option is A Consumption, Gross Investment, Government expenditure, Net exportThe GDP is calculated using the formula GDP=C+I+G+X−M Where: C = ConsumptionI = Gross InvestmentG = Government expenditureX-M = Net export

The correct option is A Consumption, Gross Investment, Government expenditure, Net export
The GDP is calculated using the formula
$G D P = C + I + G + X - M$

Where:
C = Consumption
I = Gross Investment
G = Government expenditure
X-M = Net export