Question

If imports are $100 million less than exports, government expenditures are $500 million, consumer expenditures are $1 billion, and gross investment spending is $500 million, then GDP is

Answer 1

Answer:

$1900 million

Explanation:

The formula for GDP :

Y(GDP)= Investment spending + Consumer expenditure + Government expenditure + Imports - Exports

if we input the numbers from our example we can find out the calculation of GDP as so:

GDP = $500 million + $1000 million + $500 million - $100 million

∴ GDP = $1900 million