Question

Which of the following represents the national spending approach to splitting GDP? Y = C + I + G + NX Y = C + I + G – NX Y = C + I + G Y = C + G + NX – M

Answer 1

Answer:

Y = C+ I +G +NX

Explanation:

We know,

The national spending approach is also known as the expenditure approach. According to the expenditure approach, all the goods and services that make up the gross domestic product will be applied to individual consumption, investment, and government expenditure. It also modifies the net exports and imports of a country. Therefore, option A is the correct answer as the expenditure approach, Y = C+ I +G +NX.