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Exhibit 11-7 GDP Data (Billions of Dollars) In Exhibit 11-7, and Using the Expenditures Approach, Gross Domestic

Question 37

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Exhibit 11-7 GDP data (billions of dollars)  Personal consumption expenditures $5,207 Interest 425 Corporate profits 735 Government spending 1,406 Depreciation 830 Rental income 146 Gross private domestic investment 1,116 Compensation of employees 4,426 Exports 870 Imports 965 Indirect business taxes 553 Proprietors’ income 520 Personal taxes 886 Social Security taxes 432 Transfer payments 376\begin{array} { | l | r | } \hline \text { Personal consumption expenditures } & \$ 5,207 \\\hline \text { Interest } & 425 \\\hline \text { Corporate profits } & 735 \\\hline \text { Government spending } & 1,406 \\\hline \text { Depreciation } & 830 \\\hline \text { Rental income } & 146 \\\hline \text { Gross private domestic investment } & 1,116 \\\hline \text { Compensation of employees } & 4,426 \\\hline \text { Exports } & 870 \\\hline \text { Imports } & 965 \\\hline \text { Indirect business taxes } & 553 \\\hline \text { Proprietors' income } & 520 \\\hline \text { Personal taxes } & 886 \\\hline \text { Social Security taxes } & 432 \\\hline \text { Transfer payments } & 376 \\\hline\end{array} In Exhibit 11-7, and using the expenditures approach, gross domestic product (GDP) is:


A) $6,807 billion.
B) $7,082 billion.
C) $7,634 billion.
D) $7,637 billion.

Correct Answer:

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