Which of the Following Equations Will Always Represent GDP in an Open

question 71

Multiple Choice

Which of the following equations will always represent GDP in an open economy?

• A)S = I - G
• B)I = Y - C + G
• C)Y = C + I + G
• D)Y = C + I + G + NX

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Definitions:

Product-level Activity

Activities and costs associated with a specific product, rather than with a company's operations as a whole.

Plantwide Overhead Rate

A single predetermined overhead rate that is used throughout a plant.

Activity-based Costing

This accounting methodology allocates indirect costs to specific products or services based on their usage of activities, enhancing accuracy in costing.

Departmental Overhead Rates

The allocation of indirect costs to specific departments based on a predetermined rate, for more accurate cost distribution.