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Answer :
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.
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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
