Given the following data for the economy, compute the value of GDP.

A)56
B)83
C)90
D)141

Name: Given the following data for the economy, compute the value of GDP. A)56 B)83 C)90 D)141
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Question

Given the following data for the economy, compute the value of GDP.

A)56 
B)83 
C)90 
D)141

Quizplus · Accepted Answer

Using the Expenditure Approach to computing GDP, C = 70, I = (-7 + 15 + 9)= 17, G = (10), and Xn = (5 - 12)= -7. Adding the components, GDP = 70 + 17 + 10 - 7 = 90. Note that neither transfer payments such as payments to retirees nor the sales of existing goods are included in GDP.

Given the Following Data for the Economy, Compute the Value