If consumption is $7000, exports are $600, government purchases are $2000, government transfers are $900, imports are $800, and investment is $1000, then GDP is $9,800.

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of consumption, government purchases, investment, exports, and net exports (exports minus imports). In this case, net exports are $600 - $800 = -$200. Therefore, GDP is $7000 + $2000 + $1000 + $600 - $200 = $9800.

If Consumption Is $7000, Exports Are $600, Government Purchases Are