Question

Item Government expenditures on goods and service Wages, salaries, and supplementary labour income Depreciation Investment Consumption expenditure Net exports Indirect taxes Statistical discrepancy Dollars $500 2,000 500 400 2,200 -150 150 10 Refer to Table 4.2.2. Gross domestic product equals OA) $3,050. OB) $3,150. OC) $2,950. OD) $3,250 O E) $5,050.

Answer 1

Solution: 2,950

Working:

Government expenditures on goods and service	500
Consumption expenditure	2200
Investment	400
Net exports	-150
GDP	2950