Final answer:
The GDP of Country A is calculated using the formula GDP = C + I + G + (X - M) and equals $3,030 billion when incorporating the provided values for consumption, investment, government spending, and net exports.
Step-by-step explanation:
To calculate the Gross Domestic Product (GDP) of Country A, we use the formula GDP = C + I + G + (X - M). Here, C represents consumption spending, I represents business investment, G represents government purchases, X represents export sales, and M represents imports. Inserting the provided values, we get:
GDP = $2,000 billion (C) + $50 billion (I) + $1,000 billion (G) + ($20 billion (X) - $40 billion (M))
When we calculate the above sum, the GDP equals $3,030 billion, because imports (M) are subtracted from exports (X), which results in a negative net export of $20 billion ($20 billion - $40 billion). Therefore, the total GDP for Country A is:
GDP = $2,000 billion + $50 billion + $1,000 billion - $20 billion = $3,030 billion