Thank you for visiting Suppose during the course of a year an economy produces 20 trillion of consumer goods 5 trillion of investment goods 10 trillion in government services. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
Answer:
The answer is b.$37 trillion.
Explanation:
GDP= C+ I + G+ (X-M)
GDP= $20 trillion + $5 trillion + $10 trillion + ($6 trillion- $4 trillion) = $37 trillion.
GDP would be $37 trillion
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Rewritten by : Jeany
Final answer:
The Gross Domestic Product (GDP) can be calculated using the formula GDP = C + I + G + (X - M), where C is consumer spending, I is investment, G is government spending, and (X - M) is net exports. The GDP for the given economy is $37 trillion, as determined by adding consumer goods, investment goods, government services, and net exports (exports minus imports).
Explanation:
To calculate the Gross Domestic Product (GDP) for an economy, we use the formula GDP = C + I + G + (X - M), where C represents consumer spending, I represents investment spending, G is government spending, and (X - M) is the net exports (exports minus imports).
In this scenario, we are given:
- Consumer goods (C): $20 trillion
- Investment goods (I): $5 trillion
- Government services (G): $10 trillion
- Exports (X): $6 trillion
- Imports (M): $4 trillion
We will substitute these values into the equation:
GDP = $20 trillion (C) + $5 trillion (I) + $10 trillion (G) + ($6 trillion (X) - $4 trillion (M))
GDP = $20 trillion + $5 trillion + $10 trillion + ($6 trillion - $4 trillion)
GDP = $20 trillion + $5 trillion + $10 trillion + $2 trillion
GDP = $37 trillion
Therefore, the correct answer to the student's question is option b. $37 trillion.
