Let C = Consumption, I = Private Investment, G =

question 1

Multiple Choice

Let C = consumption, I = private investment, G = government purchases, and X_n = net exports. Which of the following best represents the equation for GDP?

• A) GDP = C+ I + G − X_n
• B) GDP = C + I + G + X_n
• C) GDP = C + I + G + net imports
• D) GDP = C + I + G + tax revenues + X_n

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