Question

Refer to the diagram for a private closed economy. At the $ 200 level of GDP: consumption is $ 200 and planned investment is $ 50 so that aggregate expenditures are $ 250

Answer 1

The dollar value of GDP for Country A, calculated based on the Keynesian cross diagram, is $3,030 billion. The GDP includes consumption, investment, government spending, and net exports, which is exports minus imports.

Step-by-step explanation:

The question pertains to the economic concept of calculating the Gross Domestic Product (GDP) within the framework of a Keynesian cross diagram. Real GDP is the total value of all goods and services produced within a country in a given time period, adjusted for inflation. The Keynesian cross diagram illustrates the relationship between national income and aggregate expenditure, which includes consumption, investment, government spending, and net exports (exports minus imports).

Based on the given data for Country A, to calculate the dollar value of GDP, you would sum up the country's consumption, government purchases, business investment, and export sales, and then subtract the imports. The resulting GDP calculation for Country A would be:

GDP = Consumption + Investment + Government Spending + (Exports - Imports)

GDP = $2,000 billion + $50 billion + $1,000 billion + ($20 billion - $40 billion)

GDP = $3,030 billion

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