Home / Aptitude Tests / Economics / Which of the followi...

Which of the following can be used to measure the Gross N...

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

A.

C+I+G+(X+M)

B.

C+I+G+X

C.

C+I+G

D.

C+I+G+(X-M)

Correct answer is D

The formula to calculate the components of GNP is Y = C + I + G + X + Z. That stands for 

GNP = Consumption + Investment + Government + X (net exports, or imports - exports) - Z (net income earned by domestic residents from overseas investments - net income earned by foreign residents from domestic investments.)