SIE Exam Question 920: Answer and Explanation

Question: 920

When calculating gross domestic product (GDP), all but which of the following variables are paired with the correct description?

• A. C = Personal consumption
• B. I = Issuance of government bonds
• C. G = Government spending
• D. E = Net exports

Correct Answer: B

Explanation:

Gross Domestic Product (GDP) = C + I + G + E

C = Personal consumption

I = Gross private domestic investment

G = Government spending

E = Net exports