If personal consumption is $100, investment is $25, government purchases total $25, imports equal $20, and exports equal $10, then GDP equals
A) $160.
B) $180.
C) $150.
D) $140.

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of personal consumption, investment, government purchases, and net exports (exports minus imports). Here, GDP = $100 (consumption) + $25 (investment) + $25 (government purchases) + ($10 - $20) (net exports) = $140.

If Personal Consumption Is $100, Investment Is $25, Government Purchases