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Investment advice and corporate finance
Module 12Investment Management and Corporate FinanceAn economy reports (RM billion): household consumption 900, investment 300, government spending 250, exports 800 and imports 700. What is GDP by the expenditure approach?
GDP = C + I + G + (X − M) = 900 + 300 + 250 + (800 − 700) = RM1,550 billion. RM2,250 billion adds exports but forgets to deduct imports. RM1,450 billion leaves out net exports altogether. RM2,950 billion adds imports instead of deducting them; imports are spending on foreign output and are subtracted. Source: SIDC Module 12 Study Outline (Jul-Dec 2026) Section 1 Topic 2 Fundamentals of Economics; N. G. Mankiw, Macroeconomics (as at October 2026).
Adding imports, or forgetting to deduct them, when they are already counted inside C, I and G.
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