$$\begin{array} { | l | l | }
\hline \text { Consumption } & \$ 2,000 \
\hline \text { Gross investment } & \$ 600 \
\hline \text { Government purchases } & \$ 500 \
\hline \text { Net exports } & - \$ 40 \
\hline \text { Transfer payments } & \$ 340 \
\hline
\end{array}$$
-Refer to the data in the exhibit.What is GDP?

Question

$$\begin{array} { | l | l | } 
\hline \text { Consumption } & \$ 2,000 \
\hline \text { Gross investment } & \$ 600 \
\hline \text { Government purchases } & \$ 500 \
\hline \text { Net exports } & - \$ 40 \
\hline \text { Transfer payments } & \$ 340 \
\hline
\end{array}$$
-Refer to the data in the exhibit.What is GDP?

Quizplus · Accepted Answer

GDP is calculated as the sum of consumption, gross investment, government purchases, and net exports. Thus, GDP = $2,000 + $600 + $500 - $40 = $3,060. Transfer payments are not included in GDP calculation.

-Refer to the Data in the Exhibit