GNP Expenditure on a Country's Goods and services o 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 Copyright 2012 Pearson Education. All rights reserved 13-11Copyright © 2012 Pearson Education. All rights reserved. 13-11 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