Question

Country A has export sales of $20 billion, government purchases of $1,000 billion, business investment is $50 billion, imports are $40 billion, and consumption spending is $2,000 billion, while total rent is $500 billion. The dollar value of GDP is $ billion

Answer 1

Exports = $20 billion

Government purchases = $1,000 billion

Business investment = $50 billion

Imports = $40 billion

Consumption spending = $2,000 billion

All the above stated items are components of measuring GDP using the expenditure method.

So, in given case, expenditure method would be used to calculate the GDP.

Calculate GDP -

GDP = Consumption spending + Government purchases + Business investment + Exports - Imports

GDP = $2,000 billion + $1,000 billion + $50 billion + $20 billion - $40 billion

GDP = $3,030 billion

Thus,

The dollar value of GDP is $3,030 billion.