Question

The country of Whoville has export sales of $9 billion, government purchases of $1,022 billion, business investment is $42 billion, imports are $28 billion, and consumption spending is $1,945 billion. What is the value of GDP in billions of dollars?

Answer 1

The GDP of Whoville is $2990 billion

Explanation:

The formula for calculating GDP is given as

GDP = C + G + I + NX

Where, C = all private consumption

G = All government spending

I = Investment by businesses

NX = The country's net export

The net export = total export - total import

Total export = $9 billion

Total import = $28 billion

The net export = ($9 - $28) billion

The net export = - $19 billion

GDP = [($1945 + $1022 + $42 + (- $19)] billion

GDP = ($1945 + $1022 + $42 - $19)

GDP = $2990 billion

Hence, the GDP of Whoville is $2990 billion