Use the following data to calculate GDP: consumption = $2,000; gross investment = $600; government purchases = $500; net exports = -$40; transfer payments = $340.
A)GDP = $2,720
B)GDP = $3,060
C)GDP = $3,140
D)GDP = $3,400
E)GDP cannot be determined due to insufficient data

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of consumption, gross investment, government purchases, and net exports. Transfer payments are not included in GDP. Therefore, GDP = $2,000 + $600 + $500 - $40 = $3,060.

Use the Following Data to Calculate GDP: Consumption = $2,000;