Question
Country A has export sales of $\$ 20$ billion, government purchases of $\$ 1,000$ billion, business investment is $\$ 50$ billion, imports are $\$ 40$ billion, and consumption spending is $\$ 2,000$ billion. What is the dollar value of GDP?
Step 1
The GDP (Gross Domestic Product) of a country is calculated as the sum of Consumption (C), Investment (I), Government Spending (G), and Net Exports (X – M), where X is the value of exports and M is the value of imports. So, the formula is: \[ GDP = C + I + G + (X Show more…
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1. Country A has export sales of 20 billion dollar, government purchases of 1,000 billion dollar, business investment is 50 billion dollar, imports are 40 billion dollar, and consumption spending is 2,000 billion dollar. What is the dollar value of GDP?
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