Knowee
Questions
Features
Study Tools

In a small economy, gross investment in 2012 is $1,500, consumption spending is $6,000, net investment is $200, government spending is $1,500, exports are $2,000 and imports are $1,000. What is GDP for this economy in 2012? ______Question 3Answera.$10,700b.$10,300c.$10,200d.$10,000

Question

In a small economy, gross investment in 2012 is 1,500,consumptionspendingis1,500, consumption spending is 6,000, net investment is 200,governmentspendingis200, government spending is 1,500, exports are 2,000andimportsare2,000 and imports are 1,000. What is GDP for this economy in 2012? ______Question 3Answera.10,700b.10,700b.10,300c.10,200d.10,200d.10,000

🧐 Not the exact question you are looking for?Go ask a question

Solution

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

Here's how you calculate it:

  1. Consumption spending: $6,000
  2. Gross investment: $1,500
  3. Government spending: $1,500
  4. Net exports: Exports (2,000)−Imports(2,000) - Imports (1,000) = $1,000

Add all these components together:

6,000(consumption)+6,000 (consumption) + 1,500 (investment) + 1,500(governmentspending)+1,500 (government spending) + 1,000 (net exports) = $10,000

So, the GDP for this economy in 2012 is 10,000.Therefore,theanswerisd.10,000. Therefore, the answer is d. 10,000.

This problem has been solved

Similar Questions

Consider a closed economy with national saving of $2 trillion, consumption of $16 trillion, and government purchases of $5 trillion. What the economy's is GDP?

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

Suppose the nation's Expenditure on Consumption (C) amounts to $35000, Expenditure on Investment (I) stands at $15000, Government Expenditure (G) equals $2800, Export Revenues (X) total $3000, and Import Costs (M) tally to $2500. Calculate the nation's GDP.A.$52000B.$52300C.$53300D.$52800

If GDP (measured in billions of current dollars) is $5,465, consumption is $3,657, investment is $741, and net exports are –$1,910, then government purchases are:

A small economy starts the year with $1 million in capital. During the course of the year, gross investment is $150,000 and depreciation is $50,000. What is the economy?s capital stock at the end of the year?

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.