Question

Durable goods $3,000

Services $6,000
Business purchases of capital goods $400
Fixed investment $850
Exports $600
Imports $800
Nondurable goods $700
Inventory investment $200
Government transfer payments $100
Purchases of new residential housing $450
Government purchases $900

GDP is equal to:_______

a. $14,000
b. $11,550
c. $11,450
d. $8,600
e. $13,050

Answer 1

c. $11,450

Step-by-step explanation:

GDP = Consumption (C) + Investment (I) + Government Expenditure (G) + Net Export (NX)

GDP = [Non durable goods+Durable goods+Services] + [Fixed investment+Inventory investment] + Government purchase + [Export-Import]

GDP = [$700+$3000+$6000] + [$850+$200] + $900 + [$600-$800]

GDP = $9700 + $1050 + $900 - $200

GDP = $11,450