Chapter 6: Q 1. (page 159)

Country A has export sales of $$20 b i l l i o n$ , government purchases of $$ 1, 000 b i l l i o n$ , business investment is $$50 b i l l i o n$ , imports are $$ 40 b i l l i o n$ , and consumption spending is $$ 2, 000 b i l l i o n$ . What is the dollar value of GDP?

Short Answer

Expert verified

The value of GDP is $3,030 billion

Step by step solution

Step 1. Given information

Consumption spending $= $ 2000 b i l l i o n$

Business investment $= $ 50 b i l l i o n$

Government purchases $= $ 1000 b i l l i o n$

Import $= $ 40 b i l l i o n$

Export $= $ 20 b i l l i o n$

Step 2. Calculation

Calculate the dollar value of GDP

$\begin{array}{rcl} GDP & = & Private consumption + Government investment + Government spending + (Exports - Imports) \\ = & $ 2, 000 billion + $ 50 billion + $ 1, 000 billion + ($ 20 billion - $ 40 billion) \\ = & $ 3, 030 billion \end{array}$

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Country A has export sales of $\(20 b i l l i o n$ , government purchases of $\) 1, 000 b i l l i o n$ , business investment is $\(50 b i l l i o n$ , imports are $\) 40 b i l l i o n$ , and consumption spending is $$ 2, 000 b i l l i o n$ . What is the dollar value of GDP?

Short Answer

Step by step solution

Step 1. Given information

Step 2. Calculation

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Most popular questions from this chapter

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Country A has export sales of \(20billion, government purchases of \)1,000billion, business investment is \(50billion, imports are \)40billion, and consumption spending is $2,000billion. What is the dollar value of GDP?

Short Answer

Step by step solution

Step 1. Given information

Step 2. Calculation

One App. One Place for Learning.

Most popular questions from this chapter

Study anywhere. Anytime. Across all devices.

Country A has export sales of $\(20 b i l l i o n$ , government purchases of $\) 1, 000 b i l l i o n$ , business investment is $\(50 b i l l i o n$ , imports are $\) 40 b i l l i o n$ , and consumption spending is $$ 2, 000 b i l l i o n$ . What is the dollar value of GDP?