Use the following to answer questions .
Exhibit: Components of GDP for an Economy 1

-(Exhibit: Components of GDP for an Economy 1) What is the value of GDP?
A) $1,820 billion
B) $2,170 billion
C) $2,080 billion
D) $2,550 billion

Question

Use the following to answer questions .
Exhibit: Components of GDP for an Economy 1
 
-(Exhibit: Components of GDP for an Economy 1) What is the value of GDP?
A) $1,820 billion 
B) $2,170 billion 
C) $2,080 billion 
D) $2,550 billion

Quizplus · Accepted Answer

GDP is calculated as the sum of all the components of GDP, which are consumption (C), investment (I), government spending (G), and net exports (NX). From the exhibit, we see that: 
C = $1,285 billion 
I = $360 billion 
G = $335 billion 
NX = $100 billion (exports of $500 billion minus imports of $400 billion)

Therefore,

GDP = C + I + G + NX 
GDP = $1,285 billion + $360 billion + $335 billion + $100 billion 
GDP = $2,080 billion

So, the correct answer is option C ($2,080 billion).

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