Question

< Question 5 of 15 > Attempt2 Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchases: 2.90 trillions of rupees. Individuals consume: 10.60 trillions of rupees. Individuals save: 5.30 trillions of rupees. Businesses invest: 1.75 trillions of rupees. Foreigners spend: 0.59 trillions of rupees to purchase Pakistani firms. Pakistan imports: 2.59 trillions of rupees. Pakistan exports: 1.30 trillions of rupees. Calculate Pakistan's GDP. Assume that the values are all current and no conversions need to be made. Give your answer in terms of trillions of rupees, and round to two decimals. Pakistan's GDP: trillions of rupees

Answer 1

Here the GDP can be calculated using the expenditure method,

.

GDP =C+I+G+(X - M)

C= consumption expenditure.

I= investment expenditure.

G= government expenditure.

X= exports .

M= imports.

So we add the values to the formula,

.

= 10.60 +1.75 + 2.90 + (1.30-2.59)

.

= 13.96

Ans: trillions of rupees.