Answer to Question #162212 in Economics of Enterprise for ba

Question

The country of Econostan had the following expenditures last year: $600,000 in consumption

expenses, $90,000 in government purchases, and $150,000 in investment expenses. Further,

$75,000 of the products bought last year in Econostan were made in other countries and

$55,000 of the products made in Econostan were exported to other countries. What was the

gross domestic product of Econostan?

Answer 1

GDP = C+I+G+ NX substituting given values, we get

GDP = 600000+ 150000+90000 + (55000 - 75000) = $\$$ 820,000