If consumption is $8 billion, investments is $4 billion, government purchases are $2 billion, imports are $1 billion, and exports are $2 billion, GDP must equal:
A) $16 billion.
B) $17 billion.
C) $15 billion.
D) $14 billion.

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of consumption, investment, government purchases, and net exports (exports minus imports). So, GDP = $8B + $4B + $2B + ($2B - $1B) = $15 billion.

If Consumption Is $8 Billion, Investments Is $4 Billion, Government