Question

Suppose the economy is closed & consumption is 6,500 taxes are 1,500 and government purchases are 2,000. If national saving amounts to 1,000 then what is GDP?

Answer 1

Answer:

9,500

Explanation:

Cosumption is 6500

Taxes is 1500

Government purchases is 2000

National savings is 1000

Therefore the GDP can be calculated as follows

= savings + consumption + purchases

=1,000 + 6,500 + 2,000

= 9,500

Hence the GDP is 9,500