Question

The GDP of a country was $300 billion in 2016. In 2017, consumption spending increased by $200 billion, imports increased by $150 billion, and investment fell by $25 billion, and the country experienced inflation. Real GDP for 2017 will be: econ exam

Answer 1

Answer: $325 billion

Step-by-step explanation:

Given: The GDP of a country was $300 billion in 2016. In 2017, consumption spending increased by $200 billion, imports increased by $150 billion, and investment fell by $25 billion

GDP = (Consumption+Investment+(Exports-Imports))

GDP in 2017 = ((GDP in 2016) +Consumption increased - investment decreased-imports increased)

= $300 billion + $200 billion - $25 billion - $150 billion

= $325 billion

Hence, the real GDP for 2017 will be $325 billion.