Question
In: Economics
consumption- $330,000 government purchases- $200,000 exports- $110,000 investment- $150,000 imports- $60,000 population- 50 people accordingly, use...
consumption- $330,000
government purchases- $200,000
exports- $110,000
investment- $150,000
imports- $60,000
population- 50 people
accordingly, use the expenditure approach, real GDP
per capita is?
a. less than $10,000 per person
b. between $10,000 per person and $13,000 per person
c. between $13,000 per person and $16,000 per person
d. between $16,000 per person and $19,000 per person
e. greater than $19,000 per person
Solutions
Expert Solution
Answer :
In case of expenditure approach, GDP is the sum of Consumption(C), Investment(I), Government purchase(G) and net exports{NX, (Export - Imports)} . Therefore,
GDP = C+I+G+(NX),
GDP = 330,000+150,000+200,000+(110,000-60,000)
GDP = $680,000 + $50,000 = $730,000
GDP = $730,000
GDP per capita = GDP/Population
GDP per capita = $730,000/50 people
GDP per capita = $14,600/people
Rahul Sunny answered 2 years agoRelated Solutions
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