Question

The following are national income account data for a hypothetical economy g in billions of dollars: government purchases ($1,050), personal consumption expenditures ($4,800), imports ($370), exports ($240), and gross private domestic investment ($1,130). What is GDP for this economy

Answer 1

Answer:

the GDP is $6,850 billion

Explanation:

The computation of the GDP for this economy is as follows:

GDP = Personal consumption expenditure + Government purchases + Gross private domestic investment + Exports- imports

= $4,800 + $1,050 + $1,130 + $240 - $370

= $6,850

hence, the GDP is $6,850 billion