Use the Following Terms for This Question: C = Consumption

question 10

Multiple Choice

Use the following terms for this question: C = consumption
I = capital investment spending
G = government spending
X = exports of goods and services
M = imports of goods and services
BOP = balance of payments
GDP = gross domestic product
NPV = net present value
INF = inflation
R = real rate of return
The static equation for the nations GDP is:

• A) GDP = C + I + G + (X + M ) × INF
• B) GDP = C + I + G + X + M
• C) GDP = C + I + G + X - M
• D) GDP = C + I + X - M + R

---

Definitions:

Price Floor

A government or regulatory-imposed minimum price for a good or service, intended to prevent prices from falling below a certain level.

Shortage

An instance where the need for a good or service surpasses its availability in the marketplace.

Subsidy

Financial assistance provided by government to support businesses, organizations, or individuals, often aimed at encouraging certain economic activities or reducing burdens.

Selling Price

The amount of money that a seller charges for a product or service.