What Equation Is the GDP Identity in an Open Economy

question 65

Multiple Choice

What equation is the GDP identity in an open economy?

• A) Y = C + I + G + NCO
• B) NX = - NCO
• C) NCO = S - I + NX
• D) Y = C + I + G - NX

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Definitions:

Capital Account

In accounting, it refers to the account on a company's balance sheet that represents the owners' or shareholders' investment in the company.

Net Income

Net Income is the total profit of a company after all expenses and taxes have been deducted from total revenues, indicating the company's overall profitability.

Classified Balance Sheet

A balance sheet that groups together similar items under the headings of assets, liabilities, and equity to enhance the understanding of a company's financial position.

Current Assets

Resources anticipated to be transformed into cash, sold, or used up within a year or throughout the usual operational cycle of the company.