Use the following data to calculate GDP: consumption = $5,000; gross investment = $800; government purchases = $700; exports = $30; imports = $60; transfer payments = $340.
A)GDP = $7,400
B)GDP = $7,740
C)GDP = $3,140
D)GDP = $6,200
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 (exports minus imports). Thus, GDP = $5,000 + $800 + $700 + ($30 - $60) = $6,470. However, since none of the options match this calculation, the closest option is D) $6,200, which seems to be a mistake in the options provided.

Use the Following Data to Calculate GDP: Consumption = $5,000;