In an open economy, the relationship between GDP ( Y) and expenditures is Y = C...

In an open economy, the relationship between GDP ( Y) and expenditures is Y = C + I + G.

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True

False

Expert Solution

The statement is false

In an open economy, the Real output too includes Net exports. So the Y = Consumption + investment + Government spending + Net exports(Export - Imports)

Rahul Sunny answered 2 years ago

In an open economy, GDP is $7400 billion, consumption is $4550 billion, government expenditures are $1200...

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Consider a classical model of large-open economy described by the following equations: Y = C +...

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