Which of the following can be used to measure the Gross National product in an open economy?
index-0
C+I+G+(X+M)
index-1
C+I+G+X
index-2
C+I+G
index-3
C+I+G+(X-M)
Correct Answer:
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.