The following are national income account data for a hypothetical economy in billions of dollars: gross...

The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($120); imports ($35); exports ($22); personal consumption expenditures ($2,460); and, government purchases ($470). What is GDP in this economy?

A. $3,037 billion

B. $3,290 billion

C. $3,250 billion

Expert Solution

GDP = consumption+investment+government purchases+net exports

= 2460+120+470+(22-35)

= 3050-13

= $3037 billion

option(A)

Rahul Sunny answered 1 year ago

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