Suppose you have data on durable goods,nondurable goods,fixed investment,government purchases,exports,and imports.Can you compute GDP?
A) No,since data on services and profits are missing.
B) No,since data on inventory investment and profits are missing.
C) No,since data on inventory investment and services are missing.
D) No,since data on services and dividends are missing.
E) Yes,all of the necessary components of GDP are given.

Question

Quizplus · Accepted Answer

GDP can be computed using the expenditure approach, which includes consumption (durable goods, nondurable goods, and services), investment (fixed investment and inventory investment), government purchases, and net exports (exports minus imports). The data provided lacks information on services and inventory investment, which are necessary to calculate GDP.

Suppose You Have Data on Durable Goods,nondurable Goods,fixed Investment,government Purchases,exports,and