Ask Question
25 December, 00:34

The following is national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320), imports ($35), exports ($22), personal consumption expenditures ($2,460), and government purchases ($470). What is GDP in this economy

+4
Answers (1)
  1. 25 December, 04:32
    0
    The answer is $3,237billions

    Explanation:

    Gross Domestic Product is the market value of all final goods and services produced within a country during a given period of time usually a year.

    The formula is:

    G + I + C + (X-M)

    where G is government expenditure or purchases

    I is private domestic investment

    C is personal consumption expenditure

    X is export

    M is imports.

    Therefore, GDP is

    $470 + $320 + $2,460 + ($22-$35)

    $3,250 - $13

    $3,237billions.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following is national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320), ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers