Question

Suppose that GDP was 200 billion in year 1 and all that othe______?

Options:
Option 1: Population
Option 2: Investments
Option 3: Exports
Option 4: Inflation

Answer 1

To calculate GDP for Country A, apply the formula GDP = C + I + G + (X - M), resulting in a GDP value of $3,030 billion.

Step-by-step explanation:

The student is asking about the calculation of the Gross Domestic Product (GDP), which is an important indicator of the economic performance of a country. To calculate the GDP, we use the formula: GDP = C + I + G + (X - M), where C represents consumption, I stands for investments, G for government spending, X for exports, and M for imports.

In this scenario, Country A has the following economic data: consumption spending of $2,000 billion, government purchases of $1,000 billion, business investment of $50 billion, export sales of $20 billion, and imports of $40 billion.

Applying the formula: GDP = $2,000 billion + $50 billion + $1,000 billion + ($20 billion - $40 billion), which simplifies to GDP = $2,000 billion + $50 billion + $1,000 billion + (-$20 billion). The dollar value of GDP for Country A is therefore $3,030 billion.