Question

Answer the next question based on the following data. All figures are in billions of dollars. Gross investment $18 National income 100 Net exports 2 Personal income 85 Personal consumption expenditures 70 Saving 5 Government purchases 20 Net domestic product 105 Statistical discrepancy 0 The gross domestic product for the above economy is ___.

Answer 1

Answer:

$110 billion

Explanation:

Given: Gross investment $18

            Net exports $2

            Personal consumption expenditures $70

            Government Purchase $20

  Now, calculating gross domestic product of the economy.

Formula; GDP= C+I+G+Xn

Where, C is consumption, I is Investment, G is Government purchase and X is net export.

⇒ GDP= $70+18+20+2$

∴  GDP= $\ 110\ billion$

Hence, gross domestic product for the above economy is $110 billion.