Question

With the following information calculate the GDP for the nation of NORA



The country's spending on consumer goods and services was $60
Businesses invested $10 and built up their inventories of goods $5
The Government of NORA spent $25 on goods and services and made $10 of transfer payments
NORA exports $15 of goods and services while importing $15

Answer 1

Solution to question #151890

GDP = Consumption + Investment + Government Spending + Net Exports 

Consumption=$60

Investment=$10

Government spending=$25

Net exports= Exports-Imports=15-15=$0

So,

GDP=$60+$10+$25+$0=$95