Question

Calculate GDP for an economy that has consumer purchases of $6,000, investment purchases of $1,000, government purchases of $2,500, total exports of $1,000, and total imports of $500

Answer 1

Answer is GDP: $9,000

Explanation: GDP is computed as follows:

Consumption personal:                       $6,000

Investment made:                               $1,000

Government purchase:                        $2,500

Net of Export over import (1000-500): $500

GDP of Economy:                                 $9,000