ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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GDP = C + I-G + (X + M).
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GDP = C + I + G + (X + M).
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GDP = C + I + G + (X-M).
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GDP = C + I + (X-M).
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Detailed explanation-1: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.
Detailed explanation-2: -Final goods and services are goods and services that have been purchased for final use or goods and services that will not be resold or used in production within the year.
Detailed explanation-3: -GDP Formula GDP = private consumption + gross private investment + government investment + government spending + (exports – imports).
Detailed explanation-4: -The Output Method (all value added by each producer), The Income Method (all income generated) and. The Expenditure Method (all spending).