Question

In a small economy, consumption spending in 2009 is $6,000, government spending is $1,200, gross investment is $1,500, exports are $2,000, and imports are $1,000. What is gross domestic product in 2009?

Answer 1

Answer:

the  gross domestic product is $9,700

Explanation:

The computation of the gross domestic product is shown below

= Consumption spending + government spending + gross investment + exports - imports

= $6,000 + $1,200 + $1,500 + $2,000 - $1,000

= $9,700

Hence, the  gross domestic product is $9,700

We simply applied the above formula so that the correct value could come

And, the same is to be considered