Question

Personal consumption expenditures (C) $10,417.1 Gross private domestic investment (I) $1,818 Government consumption expenditures and gross investment (G) $3,020.2 Exports (X) $1,935.3 Imports (M) $2,435.5 Net exports of goods and services (NX) Gross domestic product (GDP) This method of calculating GDP, which involves summing the , is called the approach

Answer 1

b

Step-by-step explanation:

Answer 2

GDP = $14,755.1 and expenditure approach

Step-by-step explanation:

The formula to compute the GDP is shown below:

GDP = Personal consumption expenditures + Gross private domestic investment + Government consumption expenditures and gross investment + Net exports

where,

Net exports = Exports - imports

= $1,935.3 - $2,435.5

= -$500.2

So, the GDP is

= $10,417.1 + $1,818 + $3,020.2 - $500.2

= $14,755.1

And, the summing of all this items which are shown above while calculating the GDP is known as expenditure approach