Question

Given the following information about the economy of Pakistan, calculate Pakistan's GDP. Note that the currency of Pakistan is the Rupee. Assume that the values are all current and no conversions need to be made.

The Government Purchases: 3.40 Trillions of Rupees
Individuals Consume: 9.90 Trillions of Rupees
Individuals Save: 4.97 Trillions of Rupees
Businesses Invest: 1.35 Trillions of Rupees
Foreigners spend: 0.63 Trillions of Rupees to purchase Pakistani firms.
Pakistan Imports: 2.26 Trillions of Rupees
Pakistan Exports: 1.28 Trillions of Rupees
_________ Trillions of Rupees

Answer 1

Formula for calculating GDP;

GDP = Consumption + Investment + Government spending/Expenditure + Exports - Imports

Y = C + I + G + XM
Y = 10.53 + 6.32 + 3.40 + 1.28 - 2.26
GDP = 19.27 Trillion Rupees