Consider a country with a consumption of $485 billion, an investment of $175 billion, government purchases of $176 billion, government transfer payments of $24 billion, exports of $19 billion and imports of $40 billion for the year 2010. The country's GDP for 2010 is:

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of consumption, investment, government purchases, and net exports (exports minus imports). Thus, GDP = $485B + $175B + $176B + ($19B - $40B) = $815 billion.

Consider a Country with a Consumption of $485 Billion, an Investment