Question

The total dollar value of consumption, investment, government spending, exports, and imports is provided in the table above. What is the GDP of this fictional country?
Possible answers are:
$12,000,000
$9,000,000
$8,000,000
$10,000,000

Answer 1

The GDP of this fictional country is $ 8,000,000 (option C)

What is the GDP?

Gross domestic product (GDP) is a term to refer to a macroeconomic magnitude that expresses the monetary value of the production of goods and services in final demand of a country or region during a period, usually one year.

There are several ways to know the GDP of a country, the simplest is a mathematical operation that includes the following data:

• The consumption of households and non-profit institutions.
• The investment of companies and families.
• The final consumption expenditure of the public sector.
• The value of net exports.
• The value of imports.

The operation states that we must add the first four indicators and subtract the last one. According to the information provided in the fragment, the operation would be:

• 5 + 2 + 2 + 1 - 2 = 8

According to the above, the GDP of this fictitious country is $ 8,000,000 (option C)

Learn more about GDP in: brainly.com/question/14034620