Question

In the equation Y = C + I + G + NX, Question 4 options: Y represents the economy’s total expenditure. C represents household expenditures on services and durable goods. all of the variables are always positive numbers. All of the above are correct.

Answer 1

Answer:

Y represents the economy’s total expenditure

Explanation:

The equation Y = C + I + G + NX represents the expenditure approach to calculating GDP.

Y - economy’s total expenditure

C - household expenditures on services and goods

I - investment by firms

G - Government Spending

NX - Net Export

The variables can either be positive or negative .

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