Question

Calculate the GDP of the following country using The Expenditure Approach

1. Suppose the economy produces onions and pears. Onions are sold for $1.00 and pears are sold for
$1.50. What would the GDP be if the country produced 8 onions and 4 pears?
(P x + (PxQ

Answer 1

Given the following question:

GDP means gross domestic product, gross domestic product is the total value of product produced in a country for a year.

In this case we have 8 onions which have a value of 1 dollar

4 pears which have a value of 1.50

To find the GDP we simply:

`\begin{gathered} 1\text{ onions =1} \\ 8*1=8.00 \\ 1\text{ pear = 1.50} \\ 4*1.50=6.00 \\ 6.00+8.00=14.00 \\ \text{GDP}=14.00 \end{gathered}`

GDP is 14 dollars.