The Equation That Breaks GDP Down by the Four Sources

question 196

Multiple Choice

The equation that breaks GDP down by the four sources of aggregate spending is:

• A) GDP = C + I + G + X + IM.
• B) GDP = C + I + G - X - IM.
• C) GDP = C - I - G - X + IM.
• D) GDP = C + I + G + X - IM.

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Definitions:

Empirical Evidence

Data gathered from direct observation or experimental investigation.

Modify Behavior

The process of changing one's actions or reactions through various techniques, such as reinforcement or punishment, to achieve a desired outcome.

Trained Introspection

A method used in early psychology that involves training individuals to carefully and systematically analyze and report their conscious experiences.

Wilhelm Wundt

Wilhelm Wundt is known as the father of experimental psychology; he established the first psychology laboratory at the University of Leipzig in 1879, marking the formal beginning of psychology as a separate scientific discipline.