Calculate the GDP from the following data: Consumption $1,000 Exports 100 Government expenditures 600 Imports 120 Gross investments 75 Net investments 40 Taxes 80
Added by Kristin G.
Step 1
First, we need to calculate the total investment, which is the sum of gross investments and net investments: Total investment = Gross investments + Net investments Total investment = 75 + 40 Total investment = 115 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.
The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050); personal consumption expenditures ($4,800); imports ($370); exports ($240); gross private domestic investment ($1,130). Personal consumption expenditures are approximately what percentage of this economy?
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2. Consider the following table showing the breakdown of GDP (in billions) for China: GDP Category Amount (in billions) Consumption 1700 Investment 700 Government Expenditure 100 Exports 50 Imports 40 Using the expenditure approach, calculate GDP for China.
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