GNP Expenditure on a Country's Goods and Services The national income identity for an open economy is Y-C+I+G+EX-IM C+I+G +CA Expenditure by domestic Net expenditure by foreign individuals and institutions individuals and institutions 13-9 Copyright2012 Pearson Education.All rights reserved.Copyright © 2012 Pearson Education. All rights reserved. 13-9 GNP = Expenditure on a Country’s Goods and Services • The national income identity for an open economy is Y = C + I + G + EX – IM = C + I + G + CA Expenditure by domestic individuals and institutions Net expenditure by foreign individuals and institutions