Which of the Following Correctly Illustrates the Leakages-Injections Approach to GDP

question 13

Multiple Choice

Which of the following correctly illustrates the leakages-injections approach to GDP?

• A)DI + (NT)= C + I + G + (X ‒ M)
• B)S + C + NT = DI
• C)S + C + (NT)= I + G + (X ‒ M)
• D)S + (NT)+ M = I + G + X
• E)S + (NT)= I + G + (X ‒ M)

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Definitions:

Normal Cost System

An accounting system that applies indirect costs to products based on a standard cost rather than actual cost measures.

Cost Flow

The movement and allocation of costs through various stages of production or services, tracking how costs are assigned to products or services.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks for measuring performance.

Controlling Costs

The process of planning, monitoring, and managing expenses to operate within a budget.