Answer:
(a) Country A's GDP = $7253
(b) Country A's consumption = $3311
Step-by-step explanation:
Given Data;
The data is tabulated below
Household purchases of durable goods $1293
Household purchases of nondurable goods $1717
Household purchases of services $301
Household purchases of new housing $704
Purchases of capital equipment $310
Inventory changes $374
Purchases of new structures $611
Depreciation $117
Salaries of government workers $1422
Government expenditures on public works $553
Transfer payments $777
Foreign purchases of domestically produced goods $88
Domestic purchases of foreign goods $120
(a) country A’s GDP in 2010:
GDP which means gross domestic Product simply means the market value of final goods that is manufactured within a particular area over a period of time.
the formula of GDP is given as;
GDP = private consumption + gross investment + government spending + (exports – imports)
From the table above,
Private consumption= $1293 +$1717
+ 301 + $704 = $4015
Gross investment = $310 + $374 + $611 = $1295
Government spending = $1422 + $553 =$1975
Exports – Imports = $88 - $120 = $-32
Substituting into the formula, we have
GDP = $4015+ $1295+ $1975 + $-32
GDP = $7253
(b)Country A's consumption:
Country A's consumption = Household purchases of durable goods + Household purchases of nondurable goods + Household purchases of services
Country A's consumption= $1293
+ $1717 + $301
= $3311