Question

Calculate total GDP for this economy given the following components of supply. Round your answer to the nearest tenth and enter the value in trillions of dollars (i.e. $xx.x trillion).Components of GDP on the Supply Side(in trillions of dollars)a. Durable goods 3.8
b. Nondurable goods 2.7
c. Services 12.2
d. Structures 2.1 Change in inventories 0 Total ?

Answer 1

Answer:

The GDP Rounded to the answer to the nearest ten = $21 trillion

Explanation:

What Is GDP?

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.

Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.

Using the The Expenditure Method - Aggregate Demand (AD) the formula for GDP is:

GDP = C + I + G + (Ex - Im),

where “C” equals spending by consumers,

“I” equals investment by businesses,

“G” equals government spending and

“(Ex - Im)” equals net exports, that is, the value of exports minus imports.

GDP =

C = 3.8 + 2.7 + 12.2 = $18.7 trillion

I = 2.1 + 0

GDP = 18.7 + 2.1 = $20.8 trillion

GDP = $20.8 trillion

Rounding the answer to the nearest ten = $21 trillion