Use the table to answer the question.
Consumption $2,000
Investment $1,000
Government Spending $1,000
Imports $500
Exports $600
The market value for each type of expenditure is given for a hypothetical country in the table above. Calculate the gross domestic product of this country.
4,100
4,100 dollars
$3,900
3,900 dollars
$4,000
4,000 dollars
$5,100
5,100 dollars
To calculate the gross domestic product (GDP) of a country, we add up all the types of expenditures, including consumption, investment, government spending, exports, and imports.
The gross domestic product can be calculated with the following formula:
GDP = Consumption + Investment + Government Spending + Exports - Imports
Using the values from the table, we can plug them into the formula:
GDP = $2,000 + $1,000 + $1,000 + $600 - $500
GDP = $4,100
So, the gross domestic product of this country is $4,100.
To calculate the gross domestic product (GDP) of a country, you need to add up the values of consumption, investment, government spending, and net exports (exports minus imports).
In this case, the values given are:
Consumption: $2,000
Investment: $1,000
Government Spending: $1,000
Imports: $500
Exports: $600
To calculate GDP, you need to subtract imports from exports to get net exports:
Net Exports = Exports - Imports
Net Exports = $600 - $500
Net Exports = $100
Now, add up the values of consumption, investment, government spending, and net exports:
GDP = Consumption + Investment + Government Spending + Net Exports
GDP = $2,000 + $1,000 + $1,000 + $100
GDP = $4,100
Therefore, the gross domestic product (GDP) of this country is $4,100.