Question

Suppose during the course of a year an economy produces $20 trillion of consumer goods, $5 trillion of investment goods, $10 trillion in government services, and has $6 trillion of exports and $4 trillion of imports. For this economy, GDP would be:

a.$45 trillion.

b.$37 trillion.

c.$35 trillion.

d.$33 trillion.

Answer 1

The answer is b.$37 trillion.

Step-by-step explanation:

GDP= C+ I + G+ (X-M)

GDP= $20 trillion + $5 trillion + $10 trillion + ($6 trillion- $4 trillion) = $37 trillion.

GDP would be $37 trillion