# Table: Calculating GDPRentConsumption spendingSocial Security benefitInyestment spendingWages and salariesExportsInterestGovernment purchases of goods and serVicesProfitsImportsPurchase of stocksUnemployment compensationPavrol taxesSales taxesS2,4007,9006,1002,1006,5008001,9002,6001,4001,2006,3003,9502,9651,300

Question
 (Table: Calculating GDP) Using the information in the table Calculating GDP, which is the correct calculation for GDP? A) \$34,085 B) \$47,475 C) \$12,200 D) \$21,485
Step 1

GDP (Gross Domestic Product) of a country is the final value of all goods and services produced/ sold in that country in a year. If we account for GDP from the demand side, GDP is the aggregate of all the expenditure by all economic units in an economy, namely, government purchases, private consumption expenditure, investment expenditure, expenditure on net exports (exports-imports), etc. The equation below defines GDP as the aggregate expenditure in the economy:

Step 2

We are given,

Consumption Spending (C) = \$7,900

Investment Spending (I) = \$2,100

Government Purchases (G) = \$2,600

Exports (X) = \$800

Imports (M) = \$1,200

Step 3

We calculate GDP a...

### Want to see the full answer?

See Solution

#### Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in