Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is $2 million, government purchases are $10 million, and net export spending is $2 million.What is GDP?
A)$15 million
B)$23 million
C)$25 million
D)$27 million
E)$30 billion

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of consumption spending, planned investment spending, government purchases, and net export spending. Unplanned investment is not included. Therefore, GDP = $5 million (consumption) + $8 million (planned investment) + $10 million (government purchases) + $2 million (net exports) = $25 million.

Consumption Spending Is $5 Million, Planned Investment Spending Is $8