JAMB Economics 2024 Paper

Concept:The expenditure approach measures national income by adding all spending on final goods and services in an economy.Explanation:The formula uses consumption, investment, government spending, exports, and imports.Consumption is shown as $C$.Investment is shown as $I$.Government spending is shown as $G$.Exports are shown as $X$.Imports are shown as $M$.Imports are subtracted because they represent spending on foreign goods rather than domestic output.Adding all components gives the expenditure identity:$$Y = C + I + G + X - M$$This is the correct expenditure approach for national income.Answer:The correct option is B: $Y = C + I + G + X - M$.