Final answer:
To calculate the GDP of the small economy, we apply the formula GDP = Consumption + Investment + Government spending + (Exports - Imports), which yields a GDP value of $63,100.
Step-by-step explanation:
The student asked how to calculate the Gross Domestic Product (GDP) of a small economy with given economic indicators.
To find the value of GDP, we use the formula GDP = Consumption + Investment + Government spending + (Exports - Imports). Now, plugging in the values from the student's question: GDP = $46,000 (Consumption) + $9,000 (Investment) + $7,500 (Government spending) + ($700 (Exports) - $100 (Imports)). After performing the calculation, GDP = $46,000 + $9,000 + $7,500 + $600, which equals $63,100. This is the value of GDP in the given small economy.