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QUESTION 2 140 120 + 100 80 45° 100 200300400 GDP ($B) Refer to the graph. If this economy was an open economy without a government sector, the level of GDP would be $300 billion. $400 billion. O $100 billion. $200 billion.

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Answer #1

Ans: $300 billion

Explanation :

GDP = C+ I + G +NX

C= consumption

I = investment

G= Government expenditure

NX = Net export , ( NX = Export - Import )

So excluding government sector contribution , the level of GDP is $300 billion.

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