Answer to Question #303930 in Macroeconomics for BONGIWE

Question

The following data is for a hypothetical country. Use this data to calculate the GDP of the country.

Value of consumer goods imported from the rest of the world: R22 billion

Value of consumer goods produced by foreigners living in the country: R12 billion

Value of capital goods such as tractors imported from America: R5 billion

Value of consumer goods produced by citizens living in the country: R100 billion

Value of motor cars produced the previous year but only sold this year: R8 billion

Value of capital goods such as welding machines produced in the country: R20 billion

Provision for depreciation on capital equipment: R3 billion

The value of GDP is R____ billion. 

(Provide only the figure in your answer)

Answer 1

Answer: 132

We need to add:

Value of consumer goods produced by foreigners living in the country 12

Value of consumer goods produced by citizens living in the country 100

Value of capital goods such as welding machines produced in the country 20

GDP=132

The following items do not form part of the GDP:

Value of consumer goods imported from the rest of the world: R22 billion

Value of capital goods such as tractors imported from America: R5 billion

Value of motor cars produced the previous year but only sold this year: R8 billion

Provision for depreciation on capital equipment: R3 billion