In: Economics
Fill in the blanks to make the following statements correct.
a. The equation for actual national income from the expenditure side is written as: GDP = ___________________.
A. Ca + Ia + Ga (Xa - IMa)
B. a + bY
C. C + I + G + (X - IM)
(a) Aggregate expenditure = C+I+G+NX
= C+I+G+(X-IM)
At equilibrium , GDP= Aggregate expenditure = C+I+G+(X-IM)
The equation for actual national income from the expenditure side is written as: GDP = C+I+G+(X-IM).
Hence, option(C) is correct.