Official Answer Key & Detailed Solution
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Correct Answer: Option (C) — Y = C + I + G + (X – M)
Concept & Option Breakdown
Standard Reference VerifiedIn an open economy, aggregate demand and national income (Y) equal total domestic final expenditure plus net exports of goods and services:
Y = C + I + G + (X - M)
where C is household consumption, I is investment, G is government expenditure, X is exports, and M is imports.
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