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An economy has the following components:

- $10 trillion in consumption
- $2.5 trillion in investment
- $3 trillion in government purchases
- $1 trillion in exports
- $1.5 trillion in imports

What is the GDP in this economy?

Answer :

The GDP in this economy is $14.5 trillion.

To calculate the GDP in this economy, we need to sum up the four components: consumption, investment, government purchases, and net exports.

Given:
Consumption = $10 trillion
Investment = $2.5 trillion
Government purchases = $3 trillion
Exports = $1 trillion
Imports = $1.5 trillion

To calculate net exports, we subtract imports from exports:
Net exports = Exports - Imports
Net exports = $1 trillion - $1.5 trillion
Net exports = -$0.5 trillion

Now, we can calculate the GDP by adding up all the components:
GDP = Consumption + Investment + Government purchases + Net exports
GDP = $10 trillion + $2.5 trillion + $3 trillion + (-$0.5 trillion)
GDP = $15 trillion - $0.5 trillion
GDP = $14.5 trillion

Learn more about GDP from this link:

https://brainly.com/question/1383956

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