Exhibit 11-2 Gross domestic product data Using the expenditure approach in Exhibit 11-2, gross domestic product (GDP) is:

Question

Exhibit 11-2  Gross domestic product data  Using the expenditure approach in Exhibit 11-2, gross domestic product (GDP) is:

Quizplus · Accepted Answer

GDP can be calculated using the expenditure approach, which adds up the four components: consumption (C), investment (I), government spending (G), and net exports (NX). In this exhibit, C = $500 billion, I = $100 billion, G = $200 billion, and NX = $115 billion (exports of $400 billion minus imports of $285 billion). Therefore, GDP = C + I + G + NX = $500 billion + $100 billion + $200 billion + $115 billion = $915 billion.

Exhibit 11-2 Gross Domestic Product Data Using the Expenditure Approach