Calculate the GDP under the Expenditure approach, if Consumption is 2.9 billion, Investment is 1.3 billion, Government expenditure is 1.9 billion, Net exports are [NE], and Export is 1 billion.
Added by Lynn D.
Step 1
Step 1: Calculate Net Exports (NE) NE = Export - Import NE = 1 billion - 0 NE = 1 billion Show more…
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$$\begin{array}{lr} \text { Item } & \text { Billions of dollars } \\ \hline \text { Wages } & 8,000 \\ \text { Consumption expenditure } & 10,000 \\ \text { Other factor incomes } & 3,400 \\ \text { Investment } & 1,500 \\ \text { Government expenditure } & 2,900 \\ \text { Net exports } & -340 \end{array}$$ Explain the approach (expenditure or income) that you used to calculate GDP.
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