The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320), imports ($35), exports ($22), personal consumption expenditures ($2,460), and government purchases ($470).What is GDP in this economy?
A)$3,250 billion
B)$3,263 billion
C)$3,237 billion
D)$3,290 billion

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of personal consumption expenditures, gross private domestic investment, government purchases, and net exports (exports minus imports). Thus, GDP = $2,460 + $320 + $470 + ($22 - $35) = $3,237 billion.

The Following Are National Income Account Data for a Hypothetical