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2. Calculating GDP using national income account data Aa Aa The following table

ID: 1210029 • Letter: 2

Question

2. Calculating GDP using national income account data Aa Aa The following table shows data on consumption, investment, exports, imports, and government expenditures for the United States in 2011, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the following table to calculate GDP Personal consumption expenditures (C) Gross private domestic investment (I) Exports (X) Imports (IM) Net exports of goods and services (NX) Government consumption expenditures and gross investment (G) Gross domestic product (GDP) $10,871.6 $2,010.1 $2,119.2 $2,681.6 $562.4 $4,800.8 -$562.4 $109.1 $562.4 This method of calculating GDP, which involves summing the called thee is approach.

Explanation / Answer

Net Export=-562.4 can be calculated by (Export-Import)

Personal Consumption Expenditure,Gross Private Domestic Investment, Net Export, Govt. Consumption Expenditure and Investment ( Amount Spent on final goods and services), and Aggregate Spending

GDP=C+I+G+(X-M)=$15366.6