In a given year, an economy has consumption of $6000, investment of $4000, government purchases of $3000, exports of $1500, and imports of $500. What is the GDP?

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of consumption, investment, government purchases, and net exports (exports minus imports). Therefore, GDP = $6000 (consumption) + $4000 (investment) + $3000 (government purchases) + ($1500 - $500) (net exports) = $14,000.

In a Given Year, an Economy Has Consumption of $6000