Question

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

Answer 1

Answer:

Value of GDP equals $3,030 billion

Explanation:

Given that,

X = 20 billion

G = 1000 billion

I = 50 billion

M = 40 billion

C = 2000 billion

Recall that

GDP = C + I + G ( X - M)

Therefore,

GDP = 2000 + 50 + 1000 + (20 - 40)

= 3050 - 20

= 3030

GDP = $3030 BILLION