Question

Consumption expenditures $800 Investment expenditures 200 Government purchases 300 Exports 100 Imports 100 Wages 800 Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals____________.A. $2,200. B. $1,600. C. $1,400 D. $1.200.

Answer 1

Answer:

$1,300

Explanation:

The computation of the gross domestic product is shown below:

= Consumption expenditures + investment expenditure + government purchase + export - import

= $800 + $200 + $300 + 100 - $100

= $1,300

The export - import is also known as net exports

We simply added the consumption expenditure, investment expenditure, government purchase and net export

This is the answer, but in the options given, the same is not provided