Question

Which of the following would result in GDP for an economy equal to $10 trillion?

- A. C = $6 trillion

I = $2 trillion

G = $1.5 trillion

NX = -$2 trillion - B. C = $5 trillion

I = $5 trillion

G = $2 trillion

NX = -$2 trillion - C. C = $4 trillion

I = $3 trillion

G = $2 trillion

NX = -$1 trillion - D. C = $7 trillion

I = $2 trillion

G = $4 trillion

NX = $3 trillion

Answer #1

**Answer:**

**GDP is as follows:**

**Y = Consumption (C) + Investment (I) + Government
expenditure (G) + Net Exports (NX)**

**Putting all the options
values:**

**A]**

**Given:**

**C = $6**

**I = $2**

**G = $1.5**

**NX = -$2**

**Y = 6 + 2 + 1.5 - 2**

**Y = $7.5 trillion**

**B]**

**Given:**

**C = $5**

**I = $5**

**G = $2**

**NX = -$2**

**Y = 5 + 5 + 2 - 2**

**Y = $10 trillion**

**C]**

**Given:**

**C = $4**

**I = $3**

**G = $2**

**NX = -$1**

**Y = 4 + 3 + 2 –
1**

**Y = $8 trillion**

**D]**

**Given:**

**C = $7**

**I = $2**

**G = $4**

**NX =$3**

**Y = 7 + 2 + 4 + 3**

**Y = $16 trillion**

**Therefore from
all the above calculations, Option B] is correct option that gives
GDP = $10 trillion.**

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