What is the GDP using the information shown? $\begin{array}{ |l | c | }
\hline&\text { In billims of dallars }\
\hline \text { Consurngtion } & 5,100 \
\hline \text { Irnvestment } & 1,100 \
\hline \text { Transfer payments } & 1,050 \
\hline \text { Government Purchases } & 1,400 \
\hline \text { Exports } & 850 \
\hline \text { Imports } & 950 \
\hline \text { Net foreign factor incorne } & 20 \
\hline

\end{array}$

Question

What is the GDP using the information shown? $\begin{array}{ |l | c | } 
\hline&\text { In billims of dallars }\
\hline \text { Consurngtion } & 5,100 \
\hline \text { Irnvestment } & 1,100 \
\hline \text { Transfer payments } & 1,050 \
\hline \text { Government Purchases } & 1,400 \
\hline \text { Exports } & 850 \
\hline \text { Imports } & 950 \
\hline \text { Net foreign factor incorne } & 20 \
\hline

\end{array}$

Quizplus · Accepted Answer

GDP is calculated as Consumption + Investment + Government Purchases + (Exports - Imports). Thus, GDP = 5,100 + 1,100 + 1,400 + (850 - 950) = 7,500 billion dollars. Transfer payments and net foreign factor income are not included in GDP calculation.

What Is the GDP Using the Information Shown A)6,400 B)7,500 C)9,400 D)10,470

What Is the GDP Using the Information Shown A)6,400
B)7,500
C)9,400
D)10,470