National Income = C (household consumption) + G(_________) + I (investment expense) + NX (net exports).

Question

Question

This question was previously asked in

SSC GD Constable (2022) Official Paper (Held On : 30 Jan 2023 Shift 2)

Answer 1

The correct answer is government expenditure.Key Points

National income is calculated by adding up the total expenditures in the economy, which includes government spending.
Government expenditure refers to the amount of money spent by the government on goods and services, such as infrastructure, defense, education, and healthcare.
It is an important component of national income, as it represents the government's contribution to the economy.

Additional Information

Household consumption, represented by the variable C, refers to the amount of money spent by households on goods and services.
- It is the largest component of national income, as it represents the spending of the majority of the population.
Investment expenses, represented by the variable I, refers to the amount of money spent by businesses on capital goods, such as machinery, equipment, and buildings.
- It is an important component of national income, as it represents the investment in the economy's productive capacity.
Net exports, represented by the variable NX, refers to the difference between the value of a country's exports and imports.
- It is a measure of the country's trade balance and represents the amount of income earned from exports minus the amount spent on imports.