Consider the following hypothetical data for the U.S. economy in 2016 (in trillions of dollars)....

Question:

Consider the following hypothetical data for the U.S. economy in 2016 (in trillions of dollars). Based on the data what is GDP?

Consumption 11.0

Indirect business taxes 0.8

Depreciation 1.3

Government spending 2.8

Imports 2.7

Gross private domestic investment 3.0

Exports 2.5

Gross Domestic Product:

Gross Domestic Product is the sum total of total goods and services that have been produced in a country within a year. Gross Domestic Product is used as a measure to determine the growth and prosperity of a country.

Answer and Explanation:

GDP = Consumption + Government spending + Investment + (Export ? Import)

GDP = 11.0 + 2.8 + 3.0 + (2.5 - 2.7)

GDP = 11.0 + 2.8 + 3.0 - 0.2

GDP = 16.6 Trillion


Learn more about this topic:

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Gross Domestic Product: Definition and Components

from Economics 102: Macroeconomics

Chapter 4 / Lesson 3
59K

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