The Equation Representing the Final Demand Approach to Calculating GDP

question 101

Multiple Choice

The equation representing the final demand approach to calculating GDP is

• A)Y = C + I + X + IM.
• B)Y = C + I + G.
• C)Y = G + I + X − IM.
• D)Y = C+ I + G + (X − IM).

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Definitions:

Share Ownership

Holding of equity in a company, represented by stock, which confers certain rights such as voting power and dividends.

Financial Statements

Formal records that outline the financial activities and condition of a business, person, or other entity, including the balance sheet, income statement, and cash flow statement.

Related Party Transactions

Financial transactions between entities that have a special relationship with each other, requiring disclosure to prevent conflicts of interest.

Settlement of Liabilities

The process of discharging obligations by transferring assets, providing services, or other means, effectively resolving the liabilities.