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JAMB Economics 2014 Question 25

Question 25

National Income

Which of the following can be used to measure the Gross National Product in an open economy?

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

Answer: B (C+I+G+(X−M))

Explanation

In an open economy total spending = consumption + investment + government spending + net exports (X − M).