Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

In Calculation of GDPMP by expenditure Method, what should be added in place of question mark in the given equation?

GDPMP = C + I + G + ?

Options:

Net Imports

Net Exports

Net factor Income from Abroad

NIT (Net Indirect Tax)

Correct Answer:

Net Exports

Explanation:
 

The correct answer is Option 2: Net Exports.

The formula for calculating GDPMP (Gross Domestic Product at Market Prices) using the expenditure method is:

GDPMP = C + I + G + NX

where:

  • C = Consumption expenditures (private consumption)
  • I = Investment expenditures (gross fixed capital formation)
  • G = Government expenditures
  • NX = Net exports (exports minus imports)