Question

Country A has export sales of $\backslash (20$billion, government purchases of $\backslash )1,000$billion, business investment is $\backslash (50$billion, imports are $\backslash )40$billion, and consumption spending is $\$2,000$billion. What is the dollar value of GDP?

Short answer

The dollar value of GDP is $\$3,030$billion.

Step-by-step solution

Step 1. GDP

Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.

Step 2. GDP value

We know that GDP consists of consumption (C), investment (I), government purchases (G), and net exports (NX).

So, in this case$GDP=\$2000billion+\$50billion+\$1000billion+(\$20billion-\$40billion)=\$3,030billion$