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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Definitions:

Profit And Loss Percentages

Are critical figures that represent the percentage of profit or loss a business generates from its operations, relative to its revenues.

Final Cash Distribution

The last payment made to investors or shareholders, liquidating the remaining cash balance of an investment or fund.

Capital Balances

The amounts of money that partners or shareholders have invested in a company, represented in the equity section of the balance sheet.

Profits And Losses

The financial result of a company's operations, including all revenues and expenses over a given period, indicating overall performance.