Which of the following can be used to measure the Gross National product in an...
ECONOMICS
JAMB 2014
Which of the following can be used to measure the Gross National product in an open economy?
- A. C+I+G+(X+M)
- B. C+I+G+X
- C. C+I+G
- D. C+I+G+(X-M)
Correct Answer: D. C+I+G+(X-M)
Explanation
The formula to calculate the components of GNP is Y = C + I + G + X + Z. That stands for GNP = Consumption + Investment + Government + X (net exports, or imports - exports) - Z (net income earned by domestic residents from overseas investments - net income earned by foreign residents from domestic investments.)
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