Question

Answer this question based on the given information for an economy in some year.

Dollar value of resource extraction activity = $20 billion
Dollar value of production activity = $50 billion
Dollar value of distribution activity = $80 billion
Dollar value of final output = $120 billion
Gross output for this economy equals

Multiple Choice

$270 billion.

$260 billion.

$150 billion.

$120 billion.

Answer 1

The dollar value of GDP for Country A, calculated using the sum of consumption, investment, government purchases, and net exports (exports minus imports), is $3,030 billion.

Step-by-step explanation:

The Gross Domestic Product (GDP) is a measure that represents the dollar value of all goods and services produced over a specific time period within a country's borders. In the example provided, we can calculate GDP using the following formula:

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

Therefore, for Country A:

GDP = Consumption Spending ($2,000 billion) + Business Investment ($50 billion) + Government Purchases ($1,000 billion) + (Export Sales ($20 billion) - Imports ($40 billion))

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

GDP = $3,030 billion

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