GDP in an economy is $11,050 billion. Consumer expenditures are $7,735 billion, government purchases are $1,989 billion, and gross investment is $1,410 billion. Net exports must be

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of consumer expenditures, government purchases, gross investment, and net exports. Given the data: GDP = Consumer Expenditures + Government Purchases + Gross Investment + Net Exports. Plugging in the numbers: $11,050 billion = $7,735 billion + $1,989 billion + $1,410 billion + Net Exports. Solving for Net Exports gives: Net Exports = $11,050 billion - ($7,735 billion + $1,989 billion + $1,410 billion) = -$84 billion.

GDP in an Economy Is $11,050 Billion