In Calculation of GDPMP by expenditure Method, what should be added in place of question mark in the given equation?
GDPMP = C + I + G + ?
Answer & explanation
Correct answer: option 2
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)