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Posted by **Nicole** on Friday, August 17, 2012 at 9:02am.

C = 500 + 0.80(Y – 400)

I = 400

G = 400

(X – M) = -100

Solve for income or GDP

- Economics -
**Brett**, Friday, August 17, 2012 at 3:34pmGDP = C + I + G + (X - M)

Where:

C = household consumption expenditures / personal consumption expenditures

I = gross private domestic investment

G = government consumption and gross investment expenditures

X = gross exports of goods and services

M = gross imports of goods and services

Note: (X - M) is often written as XN, which stands for "net exports"

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