Question

The following table shows data on consumption, Investments, exports, imports, and government expenditures for the United States in 2017, as published by the Bureau of Economic Analysis. All figures are in billions of dollars.
1. Fill in the missing cells in the table to calculate GDP using the expenditure approach.
Data (Billions of dollars)
1. Consumption (C) 13,321.4
2. Investment (I) 3,368.0
3. Exports (X) 2,350.2
4. Imports (M) 2,928.6
5. Net Exports of Goods and Services ___________
6. Government Purchases (G) 3,374.4
7. Gross Domestic Product (GDP) _____________

Answer 1

Answer:

Net export of goods and services equals -$578.4 billion(its in negative)

While Gross Domestic Product is $19,485.4 billion

Explanation:

Formula for Gross Domestic Product (GDP) using expenditure approach is

C + I + G + (X-M)

where (X-M) is the net exports of goods and services.

C is consumption

I is Investment

G is government spending or purchases

X is the total exports

M is the total imports

The first question find net exports of goods and services

Net export = export (X) - import(M)

$2,350.2 - $2,928.6

= -$578.4 billion

The second question which is calculation of GDP is

$13,321.4 + $3,368.0 + $3,374.4 + $2,350.2 - $2,928.6

=$19,485.4