Question on: JAMB Economics - 2024
The formular used by the Expenditure approach to calculate National income is:
A
Y = C + I + X - M - G
B
Y = C + I + G + X - M
C
Y = C + X - M - I + G
D
Y = C - I + X - M + G
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Correct Option: B
The expenditure approach to calculating national income sums up all spending in an economy. The formula is:
[Y = C + I + G + (X - M)]
Where:
Y = National Income
C = Consumption (spending by households)
I = Investment (spending by businesses)
G = Government expenditure
X = Exports
M = Imports
Therefore, option B is correct.
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