Question

Using the expenditure approach, the Real GDP of a given economy was calculated as 250 million dollars in 2019. In 2020, the economy experienced the following:
An increase of 20 million dollars in consumption.
A decrease of 5 million dollars in investment.
An increase of 10 million dollars in government spending.
The value of all exports decreased by 5 million dollars.
The value of all imports increased 15 million dollars.
What is the Real GDP of the given economy in 2020?

Options:
255 million dollars
295 million dollars
270 million dollars
235 million dollars

Answer 1

The Real GDP of the economy given the real GDP in 2019 and the changes in the components of GDP in 2020 is $255 million.

What is the Real GDP of the given economy in 2020?

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year. Real GDP is GDP that has been adjusted for inflation.

Real GDP calculated using the expenditure approach = Consumption spending + Investment spending + Government spending + export - import

Real GDP IN 2020 = GDP in 2019 + change in GDP

= 250 million + (20 - 5 + 10 - 5 - 15)

250 million + 5 million = $255 million

To learn more about GDP, please check: brainly.com/question/15225458

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