Question

Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is $2 million, government purchases are $10 million, and net export spending is $2 million. What is GDP?

Answer 1

To calculate the GDP of Country A, add consumption spending, investment, government purchases, and net exports (exports minus imports). The dollar value of GDP for Country A is $3,030 billion.

Step-by-step explanation:

To calculate the Gross Domestic Product (GDP) of Country A, we use the formula GDP = Consumption + Investment + Government spending + (Exports – Imports). Using the provided figures:

• Consumption spending (C) = $2,000 billion
• Planned investment spending (I) = $50 billion
• Government purchases (G) = $1,000 billion
• Exports (X) = $20 billion
• Imports (M) = $40 billion

Substituting these values into the formula gives us:

GDP = $2,000 billion + $50 billion + $1,000 billion + ($20 billion – $40 billion)

GDP = $2,000 billion + $50 billion + $1,000 billion + (-$20 billion)

GDP = $3,030 billion

Therefore, the dollar value of GDP for Country A is $3,030 billion.

the GDP of Country A, add consumption spending, investment, government purchases, and net exports (exports minus imports). The dollar value of GDP for Country A is $3,030 billion.

Answer 2

Answer: $27 million

Step-by-step explanation:

Given that,

Consumption spending = $5 million

Planned investment spending = $8 million

Unplanned investment spending = $2 million

Government purchases = $10 million

Net export spending = $2 million

GDP = Consumption spending + Planned investment spending + Unplanned investment spending + Government purchases + Net Exports

= ($5 + $8 + $2 + $10 + $2) million

= $27 million