Question

In a small​ economy, consumption spending is​ $6,000, government purchases are​ $1,200, gross investment is​ $1,500, exports are​ $2,000, and imports are​ $1,000. What is gross domestic​ product?

Answer 1

Answer:

$9700

Explanation:

Given that

C = 6000

G = 1200

I = 1500

X= 2000

M = 1000

Recall that,

GDP = C + I + G + ( X - M)

therefore

GDP = 6000 +1500 + 1200 + (2000 - 1000)

= 8700 + 1000

= 9700

Therefore, GDP = $9,700

Answer 2

Answer:

$9,700

Explanation:

GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.

Gross domestic product = Consumption spending + Investment spending + Government Spending + Net Export

Net Export = export - import

$2,000 - $1000 = $1000

$6,000 +$1,200+ $1,500 + $1000 = $9,700

I hope my answer helps you