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How is 3 GDP = Net Exports of Goods and Services (NX) + Consumption (C) + Gross Private Domestic...

Question:

How is GDP = Net Exports of Goods and Services (NX) + Consumption (C) + Gross Private Domestic Investment (I) + Government Consumption and Gross Investment (G) = - 3 + 65 + 30 + 18 = 100 and not 110?

Gross Domestic Product!!!

It is the total value of goods and services purchased in an economy during a financial year. GDP drives the employment, per capita income with it and positively related with them.

Answer and Explanation:

GDP = C + I + G + X - M

where X-M is net exports

GDP = 65 + 30 + 18 - 3 = 110

Thus GDP would be 110 not 100 for sure.


Learn more about this topic:

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Gross Domestic Product: Definition and Components

from Economics 102: Macroeconomics

Chapter 4 / Lesson 3
61K

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