Explanation Given information: Inventory Investment $50billion Fixed Investment $120billion Consumer durables $420billion Consumer nondurables $275billion Interest $140billion Indirect business taxes $45billion Government wages and salaries $300billion Government purchases of goods and services $110billion Imports $80billion Exports $40billion Profits $320billion Services $600billion The formula applied here to calculate gross domestic product through expenditure approach will be: GDP = C + I + G + ( X − M ) Substituting the values, GDP = C + I + G + ( X − M ) = $ 1 , 295 billion + $ 170 billion + $ 410 billion − $ 40 billion = $ 1 , 835 billion Thus, the gross domestic product would be $1,835 billion

8th Edition

ISBN: 9781544337722

Author: Robert L. Sexton

Publisher: SAGE Publications, Inc

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Question

Chapter 11, Problem 5P

To determine

To compute:

The Gross Domestic Product using the expenditure approach.

Expert Solution & Answer

Chapter 11 Solutions

Exploring Macroeconomics

Ch. 11 - Prob. 1P Ch. 11 - Which of the following are included in GDP...Ch. 11 - Prob. 3P Ch. 11 - Prob. 4P Ch. 11 - Prob. 5P Ch. 11 - Prob. 6P Ch. 11 - Prob. 7P Ch. 11 - Prob. 8P Ch. 11 - Prob. 9P Ch. 11 - Nominal GDP in Nowhereland in 2018 and 2019 is as...

Ch. 11 - Prob. 11P Ch. 11 - Prob. 12P

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