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      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).

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