Given the following data for an economy,compute the value of GDP.

A) 130.
B) 140.
C) 150.
D) 160.
E) 320.

Question

Given the following data for an economy,compute the value of GDP.

A) 130. 
B) 140. 
C) 150. 
D) 160. 
E) 320.

Quizplus · Accepted Answer

GDP (Gross Domestic Product) is the total value of all final goods and services produced in an economy in a given year. 
Using the information provided, we can calculate GDP as: 
GDP = C + I + G + NX 
where, 
C = Personal Consumption Expenditures = 40 
I = Gross Private Domestic Investment = 20 
G = Government Consumption Expenditures and Gross Investment = 30 
NX = Net Exports = 60 - 0 = 60 (since exports minus imports is zero in this case) 
Therefore, GDP = 40 + 20 + 30 + 60 = 150.

Given the Following Data for an Economy,compute the Value of GDP