- National Income (Y) calculated using the expenditure method. - Components are Consumption (C), Investment (I), Government Expenditure (G), and Net Exports (X-M). - Open economy includes international trade (Exports and Imports).
In an open economy, the National Income (Y) of the economy is (C, I, G, X, M stand for consumption, investment, government expenditure, total exports, and total imports, respectively.) _________.
Asked in GPSC Prelims CSP 2 2022 · UPPCS Prelims 2000 · Topic: National Income & Gross Domestic Product (Circular Flow of Income: Two, Three, and Four-Sector Models)
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Answer: C. Y = C + I + G + (X – M)
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