Use the table to answer the question.
Consumption $2500
Investment $1000
Government Spending $1000
Imports $500
Exports $1000
The market value for each type of expenditure is given for a hypothetical country in the table above. Calculate the gross domestic product for this country.
(1 point)
Responses
$4,100
$4,100
$4,000
$4,000
$6,000
$6,000
$5,000
$5,000
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To calculate the gross domestic product (GDP), we use the formula:
GDP = Consumption + Investment + Government Spending + (Exports - Imports)
Plugging in the values:
GDP = $2500 + $1000 + $1000 + ($1000 - $500)
GDP = $2500 + $1000 + $1000 + $500
GDP = $4000
Therefore, the GDP for this country is $4,000.
The correct answer is:
$4,000