Which of the Following Identities Shows That GDP Is Both

question 38

Multiple Choice

Which of the following identities shows that GDP is both total income and total expenditure?

• A) GDP = Y
• B) Y = PI + DI + NX
• C) GDP = GNP - NX
• D) Y = C + I + G + NX

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Definitions:

Warranty Expense

Costs a company incurs due to honoring a product warranty, covering repair and replacement of faulty products.

Warranty Repairs

Services provided to fix or replace products that fail to perform as expected within a given warranty period, usually at no cost to the customer.

Note Proceeds

The amount of money received from issuing notes payable, which is a loan or credit extended by financial institutions or others.

Discounted Note

A note receivable or payable that is issued at a discount to its face value and upon which interest reflects the difference between the face value and the issued price.