$$\begin{array} { | l | c | }
\hline \text { Government Purchases } & \$ 15 \
\hline \text { Consumption } & 90 \
\hline \text { Gross Investment } & 20 \
\hline \text { Consumption of Fixed Capital (depreciation) } & 5 \
\hline \text { Exports } & 8 \
\hline \text { Imports } & 12 \
\hline
\end{array}$$ Refer to the accompanying data (all ?gures in billions of dollars). GDP is
A) $116.
B) $121.
C) $125.
D) $150.

Question

$$\begin{array} { | l | c | } 
\hline \text { Government Purchases } & \$ 15 \
\hline \text { Consumption } & 90 \
\hline \text { Gross Investment } & 20 \
\hline \text { Consumption of Fixed Capital (depreciation) } & 5 \
\hline \text { Exports } & 8 \
\hline \text { Imports } & 12 \
\hline
\end{array}$$ Refer to the accompanying data (all ?gures in billions of dollars). GDP is
A) $116.
B) $121.
C) $125.
D) $150.

Quizplus · Accepted Answer

GDP can be calculated as follows:
GDP = C + I + G + (X-M)
where C is consumption, I is gross investment, G is government purchases, X is exports, and M is imports.
Substituting the given values, we get:
GDP = 90 + 20 + 15 + (8-12)
GDP = 121
Therefore, the answer is choice B.

Refer to the Accompanying Data (All ?Gures in Billions of