Exhibit 11-3 Expenditure approach

-As shown in Exhibit 11-3,using the expenditure approach,GDP is:

Question

Exhibit 11-3 Expenditure approach
 
-As shown in Exhibit 11-3,using the expenditure approach,GDP is:

Quizplus · Accepted Answer

The expenditure approach adds up four components of spending: consumption (C), investment (I), government spending (G), and net exports (NX). 
In this exhibit, C = $800 billion, I = $200 billion, G = $400 billion, and NX = -$225 billion. 
Therefore, GDP = C + I + G + NX = $800 billion + $200 billion + $400 billion + (-$225 billion) = $1,775 billion. So, the best choice is C.

Exhibit 11-3 Expenditure Approach