Question on: JAMB Economics - 2014
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)
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Correct Option: D
The Gross National Product (GNP) in an open economy is calculated using the following formula:
- GNP = C + I + G + (X - M)
Where:
- C = Consumption
- I = Investment
- G = Government Spending
- X = Exports
- M = Imports
- (X - M) = Net Exports (exports minus imports).
Option D, C+I+G+(X-M), accurately reflects this formula, thus providing the correct method for measuring GNP in an open economy.
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