Question

The gross domestic product (GDP) for Country A and Country B is approximated using the following functions, where x=60 corresponds to the year 1960:

Country A: f(x) = 0.00014(1.109)ˣ
Country B: g(x)=0.00012(1.115)ˣ

Answer 1

The dollar value of GDP for Country A is $3,030 billion, calculated using the GDP formula with given values for consumption, investment, government spending, and net exports.

Step-by-step explanation:

The question asks dollar value of GDP for Country A, which can be calculated using the standard formula:

• GDP = Consumption (C) + Investment (I) + Government Spending (G) + Net Exports (NX)

Here, Net Exports (NX) = Exports (X) - Imports (M).

Given for Country A:

• Consumption (C) = $2,000 billion
• Investment (I) = $50 billion
• Government Purchases (G) = $1,000 billion
• Exports (X) = $20 billion
• Imports (M) = $40 billion

Calculating Net Exports (NX):

NX = X - M = $20 billion - $40 billion = -$20 billion

Calculating GDP:

GDP = C + I + G + NX = $2,000 billion + $50 billion + $1,000 billion - $20 billion = $3,030 billion

The dollar value of GDP for Country A is $3,030 billion.