Let C=consumption, I=private Investment, G=government Purchases, X_n=net Exports

question 10

Multiple Choice

Let C=consumption, I=private investment, G=government purchases, X_n=net exports.Which of the following best represents the equation for GDP?

• A)GDP = C+ I + G − X_n
• B)GDP = C + I + G + X_n
• C)GDP = C + I + G + Net Imports
• D)GDP = C + I + G + T + X_n

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Definitions:

Salvage Value

The estimated residual value of an asset after it has reached the end of its useful life and can no longer be used for productive purposes.

Ore Extracted

The quantity of valuable minerals or metals that are removed from the earth through mining operations.

Patent Amortization

The process of gradually expensing the cost of a patent (an intangible asset) over its useful life to reflect its consumption or expiration.

Equipment Exchanges

Transactions where businesses trade equipment with each other, often to update or upgrade their operational assets without significant cash outflows.