According to the Expenditure Approach,if Y Is GDP,C Is Consumption,I

question 12

Multiple Choice

According to the expenditure approach,if Y is GDP,C is consumption,I is investment,G is government purchases,and NX is net exports,which of the following is the national income identity?

• A)Y = C + I + G - NX
• B)Y = C + I + G + NX
• C)Y + C = I + G + NX
• D)Y = (C + I + G)/NX
• E)Y = C + I + G

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Definitions:

Inventory

The total amount of goods and materials held in stock by a business, industry, or other entity, used in production or sales.

Sole Proprietorship

An unincorporated business firm owned by one person.

Liability

Liability refers to legal financial debts or obligations that arise during the course of business operations, which an entity is responsible for settling.

Capital

Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.