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Summer Benson
on Dec 16, 2024

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If consumption = $2,000,investment = $600,government purchases = $500,net exports = −$40,transfer payments = $340,then _____.

A) GDP = $2,720
B) GDP = $3,060
C) GDP = $3,140
D) GDP = $3,400
E) GDP = $3,340

GDP Calculation

The process of determining the Gross Domestic Product of a country, which can include adding up all income earned in the economy or all expenditures made.

Consumption

The use of goods and services by households. It is a primary component of GDP and an indicator of economic health.

Government Purchases

Expenditures by the government on goods and services that are part of a country's national budget.

  • Gain insight into how government outlays, net exports, and investment activities factor into the Gross Domestic Product calculation.
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Joseph ValverdeDec 18, 2024
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