If imports are $100 million less than exports, government spending is $500 million, consumer expenditures are $1 billion, and investment spending is $500 million, then GDP is

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of consumer expenditures, investment spending, government spending, and net exports (exports minus imports). Here, GDP = $1 billion (consumer) + $500 million (investment) + $500 million (government) + $100 million (net exports) = $2.1 billion.

If Imports Are $100 Million Less Than Exports, Government Spending