In a small economy,consumption spending is $6,000,government spending is $1,200,gross investment is $1,500,exports are $2,000,and imports are $1,000.What is gross domestic product?

Question

Quizplus · Accepted Answer

Gross Domestic Product (GDP) is calculated as the sum of consumption spending, government spending, gross investment, exports, and imports. Therefore,

GDP = Consumption spending + Government spending + Gross investment + Exports - Imports

GDP = $6,000 + $1,200 + $1,500 + $2,000 - $1,000

GDP = $9,700

Hence, the answer is option A.

In a Small Economy,consumption Spending Is $6,000,government Spending Is $1,200,gross