Question

In the economy of Talikastan in 2015, consumption was $5300, GDP was $8800, government purchases were $1800, imports were $600, and investment was $2000. What were Talikastan's exports in 2015?

a. -$900
b. -$600
c. $200
d. $300

Answer 1

To find the value of exports, subtract total consumption, investment, government purchases, and imports from GDP. In this case, Talikastan's exports in 2015 were -$900.

Step-by-step explanation:

GDP, or Gross Domestic Product, is the total value of all final goods and services produced in a country during a specific period of time.

It is calculated by adding up consumption, investment, government spending, and the difference between exports and imports.

In this scenario, the given information is: consumption = $5300, GDP = $8800, government purchases = $1800, imports = $600, and investment = $2000.

To find the value of exports, we can rearrange the formula: exports = GDP - (consumption + investment + government purchases + imports).

Plugging in the given values, exports = $8800 - ($5300 + $2000 + $1800 + $600) = $8800 - $9700 = -$900.

Therefore, Talikastan's exports in 2015 were -$900.