Question

Families buy groceries 700 An electronics company sells HD projectors to households 100 A personal trainer gives a Zumba class 8 A custard stand sells pistachio ice cream 2 The police department buys new cars 500 The mayor leads creation of a new budget for education 300 An elevator-construction company builds a new factory 600 A local businessperson purchases corn from Mexico 400 A sports-gear company sells hockey gloves to Russian team 200 A bike store sells five used carbon-fiber bikes 200 A local stockbroker executes trades for clients 2,000 Using the expenditure approach, determine the following: Consumption = Investment = Government purchases = Net exports = GDP =

Answer 1

GDP, or Gross Domestic Product, is a measure of the total value of all goods and services produced within a country's borders. Using the expenditure approach, the dollar value of GDP can be calculated by adding consumption, investment, government purchases, and net exports.

Step-by-step explanation:

GDP, or Gross Domestic Product, is a measure of the total value of all goods and services produced within a country's borders in a specific time period. It can be calculated using the expenditure approach, which adds together consumption, investment, government purchases, and net exports.

Step-by-step calculation:

1. Consumption spending: $2,000 billion
2. Investment: $50 billion
3. Government purchases: $1,000 billion
4. Net exports: Export sales ($20 billion) minus imports ($40 billion) = -$20 billion
5. GDP = Consumption + Investment + Government purchases + Net exports = $2,000 billion + $50 billion + $1,000 billion + (-$20 billion)
6. GDP = $3,030 billion