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GDP CalculationIf the GDP of an economy is $600 billion, the household consumption is $100 billion, government spending is $180 billion, investments are $60 billion and total imports are $100 billion, what will be the value of total exports?$360 billion$175 billion$125 billion$150 billion

Question

GDP CalculationIf the GDP of an economy is 600billion,thehouseholdconsumptionis600 billion, the household consumption is 100 billion, government spending is 180billion,investmentsare180 billion, investments are 60 billion and total imports are 100billion,whatwillbethevalueoftotalexports?100 billion, what will be the value of total exports?360 billion175billion175 billion125 billion$150 billion

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Solution

The Gross Domestic Product (GDP) is calculated as the sum of household consumption, government spending, investments, and net exports (exports - imports).

Given: GDP = 600billionHouseholdconsumption=600 billion Household consumption = 100 billion Government spending = 180billionInvestments=180 billion Investments = 60 billion Imports = $100 billion

We can calculate the total exports using the formula:

GDP = Household consumption + Government spending + Investments + (Exports - Imports)

Rearranging the formula to find the value of Exports gives:

Exports = GDP - Household consumption - Government spending - Investments + Imports

Substituting the given values into the formula:

Exports = 600billion600 billion - 100 billion - 180billion180 billion - 60 billion + $100 billion

Exports = $360 billion

So, the value of total exports is $360 billion.

This problem has been solved

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