Question of the Week

If consumption was $2B, investment $0.5B, government purchases $3B, exports $1B, and imports $2B what is the GDP?

a) $6.5B
b) $4.5B
c) $7.5B
d) $5.5B


Answer:

The correct answer is b.

GDP = Consumption + Investment + Government Purchases + (Exports - Imports)

So,

GDP = 2+0.5+3+(1-2) = $4.5B

Topic: CSC Volume 1 - Micro and Macroeconomics