Question

Suppose GDP in this country is $950 million. Enter the amount for investment.

National Income Account Value (Millions of dollars)
Government Purchases (G) 250
Taxes minus Transfer Payments (T) 325
Consumption (C) 375
Investment (I)
Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table.

Answer 1

To calculate the dollar value of GDP, you need to add up consumption spending, investment, government purchases, and net exports.

Step-by-step explanation:

The dollar value of GDP can be calculated by adding up the components of GDP, which include consumption spending, investment, government purchases, and net exports (exports minus imports).

In this case, the dollar value of GDP is given by:

GDP = Consumption + Investment + Government Purchases + Net Exports

Given that consumption spending is $2,000 billion, investment is $50 billion, government purchases is $1,000 billion, and imports are $40 billion, the calculation is as follows:

GDP = $2,000 billion + $50 billion + $1,000 billion + ($20 billion - $40 billion) = $2,000 billion + $50 billion + $1,000 billion - $20 billion + $40 billion = $3,070 billion