All final goods and services that make up GDP can be expressed in the form:

a. GDP = C + I ? G + (X + M).
b. GDP = C + I + G + (X + M).
c. GDP = C + I + G + (X ? M).
d. GDP = C + I + (X ? M).
e. GDP = C + I + G.

c

Economics

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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 

A. D; C B. B; C C. B; A D. D; B

Economics

Use the following graph, which shows the supply and demand for British pounds, to answer the next question.D1 and S1 represent the initial demand and supply curves. If there is a huge increase in the desire of U.S. buyers to consume British products, and the British government starts buying U.S. dollars in order to fix the exchange rate at the initial level, then the new equilibrium will be found at ________.

A. Point H B. Point C C. Point F D. Point J

Economics