Suppose desired consumption $11 billion,desired investment $1 billion,and government purchases of goods and services $4 billion.If the desired foreign lending in this economy is $4 billion,what is the GDP?
A)$20 billion
B)$16 billion
C)$12 billion
D)$10 billion

Question

Quizplus · Accepted Answer

The GDP is calculated as the sum of desired consumption, desired investment, government purchases, and desired foreign lending: $11B + $1B + $4B + $4B = $20B.

Suppose Desired Consumption $11 Billion,desired Investment $1 Billion,and Government Purchases