The Equation for GDP Using the Expenditure Approach Is

question 135

Multiple Choice

The equation for GDP using the expenditure approach is:

• A) GDP = Consumption + Investment + Government Purchases + Imports + Exports.
• B) GDP = Consumption + Investment + Government Purchases - Imports - Exports.
• C) GDP = Consumption + Investment + Government Purchases + Imports - Exports.
• D) GDP = Consumption + Investment + Government Purchases + Exports - Imports.

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Definitions:

Reaction Curve

Relationship between a firm’s profit-maximizing output and the amount it thinks its competitor will produce.

Nash Equilibrium

A concept in game theory where no participant can gain by unilaterally changing their strategy if the strategies of the others remain unchanged.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while other players keep theirs unchanged.

Stackelberg Equilibrium

A strategic game theory outcome where one leader firm sets its output first, influencing the follower firms' decisions in a market.