passwella.
Menu

JAMB Economics 2004 Question 6

Question 6

National Income

In an open economy, the GNP is measured as

  1. A.C + I + G + X
  2. B.C + I + G + (X – M)
  3. C.C + I + G + M
  4. D.C + I + G
Show the answer and explanation

Answer: B (C + I + G + (X – M))

Explanation

An open economy trades with others, so national expenditure adds net exports: consumption + investment + government spending + (exports − imports).