The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320); imports ($35); exports ($22); personal consumption expenditures ($2,460); and, government purchases ($470). What is GDP in this economy? A) $3,250 billionB) $3,263 billionC) $3,237 billionD) $3,290 billion

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11 April, 18:44

The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320); imports ($35); exports ($22); personal consumption expenditures ($2,460); and, government purchases ($470). What is GDP in this economy? A) $3,250 billionB) $3,263 billionC) $3,237 billionD) $3,290 billion

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Jillian Spence · Answer 1

The answer is C) $3,237

Explanation:

GDP = private consumption + gross investment + government investment + government spending + (exports - imports).

GDP C + I + G + (X_M)

GDP = 2460 + 320 + 470 + (22-35) = 3237