Home / Questions / The equation for calculating GDP in a closed econom
The equation for calculating GDP in a closed economy is:
GDP = C + I + G
Subtracting C and G from both sides of the equation yields:
GDP - C - G = I
The right side of the equation is investment spending. The left side of the equation equals:
(A) National savings
(B) National income
(C) Tax revenue
(D) The budget deficit
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