Question

Household purchases of durable goods $1,293 Household purchases of nondurable goods $1,717 Household purchases of services $301 Household purchases of new housing $704 Purchases of capital equipment $192 Inventory changes $374 Purchases of new structures $611 Depreciation $117 Salaries of government workers $1,422 Government expenditures on public works $553 Transfer payments $777 Foreign purchases of domestically produced goods $88 Domestic purchases of foreign goods $120 Note that depreciation is the value loss of the durable goods purchased before this year. What was country A's GDP in 2019

Answer 1

The correct answer is $7,253

Step-by-step explanation:

According to the given scenario, the calculation of the country A GDP in the year 2019 is as follows:

The Country's GDP is

= Net Consumption + Net investment + government purchase + net export (export-import)

= ($1,293 + $1,717 + $301) + ($704 + $310 + $374 + $611) + ($1,422 + $553) +($88 - $120)

= $3,311 + $1,999 + $1,975 - 32

= $7,253

Therefore , Country A's GDP is $7,253