Keep the Highest: /1 Attempts 4. Measuring GDP The following table shows data on

Question

Keep the Highest: /1 Attempts 4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2007, as published by the Bureau of Economic Analysis. All figures are in billions of dollars Fill in the missing cells in the table to calculate GDP using the expenditure approach. Consumption (C) Investment (I) Exports (X) Imports (M) Net Exports of Goods and Services Government Purchases (G) Gross Domestic Product (GDP) Data (Billions of dollars) 9,734.2 2,125.4 1,643.0 2,351.0 2,689.8 Grade It Now Save & Continue Continue without saving

Explanation / Answer

Answer : The formula of net exports on goods and services is following :

Net Exports = Exports - Imports

Given, Exports = $1643.0 and Imports = $2351.0

Therefore,

Net Exports on Goods and Services = (1643.0 - 2351.0)

= - $708.

Again, the formula of Gross Domestic Product (GDP)

= C + I + G + ( X - M )

Given, C = $9734.2 ; I = $2125.4 ; G = $2689.8 ;

(X - M) = - $708

Therefore, GDP = 9734.2 + 2125.4 + 2689.8 + ( - 708 )

=> GDP = $13841.4

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