In: Economics
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
GDP = consumption+investment+government purchases+net exports
= 2460+120+470+(22-35)
= 3050-13
= $3037 billion
option(A)