New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    In the expenditure approach to calculating GDP, what is

    the formula for GDP?
    A GDP = C + I + G + (X - M) Correct Answer Incorrect Answer
    B GDP = C + I + G - (X - M) Correct Answer Incorrect Answer
    C GDP = C - I + G + (X + M) Correct Answer Incorrect Answer
    D GDP = C - I - G + (X - M) Correct Answer Incorrect Answer
    E GDP = C + I - G - (X + M) Correct Answer Incorrect Answer

    Solution

    This is the correct formula for GDP in the expenditure approach, where GDP is the sum of consumption (C), investment (I), government spending (G), and net exports (exports - imports, denoted as X - M).

    Practice Next

    Relevant for Exams: