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19 March, 22:28

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.

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  1. 19 March, 22:54
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    The answer is b.$37 trillion.

    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
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