Question

Calculate the GDP of Dinoland using the expenditures approach given the following data: personal consumption expenditures = $10 billion; gross private domestic investment = $5 billion; government spending = $3 billion; exports = $2 billion, imports = $1 billion.

a) $12 billion
b) $19 billion
c) $18 billion
d) $17 billion

Answer 1

b) $19 billion

Step-by-step explanation:

Answer 2

Answer: b) $19 billion

Step-by-step explanation:

GDP = Consumption + Investment + Government Spending + (Exports - Imports)

GDP = $10 + $5 + $3 + ($2-$1) = $19 billion