GDP is $7 trillion. If consumption is $3.5 trillion, investment is $1.4 trillion, and government purchases are $2.1 trillion, then:

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of consumption, investment, government purchases, and net exports (exports minus imports). Given that GDP is $7 trillion and the sum of consumption, investment, and government purchases is $7 trillion ($3.5 trillion + $1.4 trillion + $2.1 trillion), this means net exports must be $0, indicating that exports are equal to imports.

GDP Is $7 Trillion