Answer to Question #113480 in Economics of Enterprise for Emma

Question

The United States economy has a GDP of $15 trillion, investment is $2 trillion, government purchases $3 trillion, and net exports is -$1 trillion. What part of the expenditure method of calculating GDP is missing? What dollar amount of GDP is the missing category?

Answer 1

GDP$=C+I+G+Xn;$

$GDP=$ $$15 trillion;$

$I=$ $$2 trillion;$

$G=$ $$3trillion;$

$Xn=$ $$-1trillion;$

C$-$ private consumption;

$C=15$ $-2-3-(-1)=$ $$11 trillion;$