Question

The Gomez Company, a merchandising firm, has budgeted its activity for December according to the

following information. The budgeted cash disbursements for December are:
A. $435,000
B. $385,000
C. $425,000
D. $465,000

Answer 1

To calculate Country A's GDP, we sum up consumption, government purchases, investments, and net exports, yielding a total GDP of $3,030 billion.

Step-by-step explanation:

The student's question relates to the calculation of the Gross Domestic Product (GDP) of Country A. To calculate the GDP, we use the following formula: GDP = Consumption + Government Purchases + Investment + (Exports - Imports). Substituting the provided values, we get GDP = $2,000 billion + $1,000 billion + $50 billion + ($20 billion - $40 billion). This simplifies to a GDP of $3,030 billion after accounting for the negative net export value of -$20 billion (imports are greater than exports).