Question

The following questions are based on this table:

4.a. Calculate the Gross Domestic Product in Year 1

4.b. Calculate the gross Domestic Product in Year 2

1)Explain what changes occurred to GDP from Year 1 to Year 2

9:36 • pccc.blackboard.com ☺ stion Completion wwwwww United States greater efficiency among .. producers lower prices for many consumer goods and services ESTION 10 point e d The following questions are based on this table: a. Calculate the Gross Domestic Product in Year 1 1.b. Calculate the gross Domestic Product in Year 2 Year Year 2 Consumption Expenditures $10,089 Consumption Expenditures Private Domestic Investment 1.628 Private Domestic Investment Government Expenditures 2,931 Government Expenditures Imports 725 Imports Exports Exports Gross Domestic Product Gross Domestic Product $10.545 123 3.280 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). TTTA 3 (126) TEIE QI93 The gross domestic product is given by Gross domestie poder Consumption expenditure private domestic investment Government expenditure export-Imports 1. For year 1: ESTION 11 10 points Surved Explain what changes occurred to GDP from Year 1 to Year 2 for the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). TTT Aril (12) T. . . . BI: A In white me the chanenin ne domestic product in year 2 vis-a-vis in year chake and click Save All lla stic product in year 2 vis-a-vis in year 1 Save Alwers Save and Submit

Answer 1

GDP is gross domestic product. It is sum total of values of all final goods and services produced in a country in a year.

It can be calculated expenditure method by using by a formula: C+I+G+(X-M)

where C= Consumption expenditureI= Investment expenditure

G= Government expenditure

Net exports = exports -imports.

Putting values in this formula, we get : Year 1:

10089+1628+2931+650-725= 14573 units of currency

Similarly for year 2, we get:15619 units of currency.

major changes occured in government spendings and exports also increased between these two years. GDP has increased.