n the economy of Talikastan in 2015, consumption was $700, exports were $200, government purchases were $300, imports were $150, and investment was $400. What was Talikastan's GDP in 2015? a. $1350 b. $1450

Question

Damian Delacruz

Business

11 December, 04:54

n the economy of Talikastan in 2015, consumption was $700, exports were $200, government purchases were $300, imports were $150, and investment was $400. What was Talikastan's GDP in 2015? a. $1350 b. $1450

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Answers (1)

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Mckinley Ortega · Answer 1

b. $1450

Explanation:

The formula to calculate GDP is:

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

Where:

C = consumption I = Investment G = government purchases NX = Net Exports (Exports - Imports) X = Exports M = Imports

Now, we plug the amounts into the formula:

GPD = 700 + 400 + 300 + 50 (200 - 150)

= 1,450