Question

The country of Whoville has export sales of $11 billion, government purchases of $907 billion, business investment is $35 billion, imports are $26 billion, and consumption spending is $2,097 billion. What is the value of GDP in billions of dollars? (Do not include the word "billion" in your answer, only enter the number.)

Answer 1

The formula for GDP is,

`\text{GDP}=C+I+G+(X-M)`

Where

C is consumption

I is investment

G is government spending

X is exports

M is imports

From the problem, given,

C = 2097

I = 35

G = 907

X = 11

M = 26

(all in billions of dollars)

Let's substitute and figure out the GDP:

`\begin{gathered} \text{GDP}=C+I+G+(X-M) \\ \text{GDP}=2097+35+907+(11-26) \\ \text{GDP}=3024 \end{gathered}`

So,

The Gross Domestic Product (GDP) is 3,024 billion dollars