In a Static (Accounting) Sense, a Nation's GDP Can Be

question 39

Multiple Choice

In a static (accounting) sense, a nation's GDP can be represented by the following equation: where C = consumption spending, I = investment spending, G = government spending, X = exports of goods and services, and M = imports of goods and services.

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

---

Definitions:

Drive Reduction Theory

A theory that explains behavior as an attempt to reduce drives and achieve homeostasis.

Increases Drives

Refers to the process or condition that enhances the motivational state of an organism to achieve certain goals or satisfy needs.

Psychological State

The mental condition of a person at a given time, which encompasses emotions, thoughts, and feelings.

Physiological State

The condition of normal function or activity of the body and its systems, often influenced by factors like health, genetics, and environment.