If exports are €0.1 billion more than imports, government expenditures are €0.5 billion, consumer expenditures are €1 billion, and gross investment spending is €0.5 billion, calculate GDP at market prices (give only a numerical answer up to one decimal
Answer= 2.1
Reason:
Given is the following data:
Exports - Imports = €0.1 B
Government expenditure = €0.5 B
Consumer expenditure = €1 B
Gross investment spending = €0.5 B
GDP at market prices = ?
The formula for calculating GDP at Market Prices is:
GDP = C + I + G + X - M
where C= Consumption, I = Investment, G= Government Expenditure, and X- M = Exports- Imports
Thus, putting the values in the above formula:
GDP at market prices = €1 B + €0.5 B + €0.5 B + € 0.1 B
= € 2.1 B
Thus, GDP at market prices = 2.1
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