According to the table,when using the expenditure approach,GDP is: Category
Billions
Proprietors' income
$300
Capital consumption allowance
440
Federal government purchases of goods and services
200
Compensation of employees
800
Personal consumption expenditures
950
Corporate profits
90
Exports
60
Gross private domestic investment
500
Rental income
30
State and local government purchases of goods and services
150
Net interest
100
Federal government deficit
250
Imports
90
A) $1,320 billion.
B) $1,770 billion.
C) $1,330 billion.
D) $2,020 billion.

Question

Quizplus · Accepted Answer

The expenditure approach to GDP is calculated as: GDP = C + I + G + (X - M), where C is personal consumption expenditures ($950 billion), I is gross private domestic investment ($500 billion), G is government purchases (federal $200 billion + state and local $150 billion), X is exports ($60 billion), and M is imports ($90 billion). Therefore, GDP = 950 + 500 + (200 + 150) + (60 - 90) = $1,770 billion.

According to the Table,when Using the Expenditure Approach,GDP Is: Category