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 $6,000 $6,000 $4,100 $4,100 $4,000 $4,000 $5,000
To calculate the gross domestic product (GDP) for this country, we use the formula:
GDP = Consumption + Investment + Government Spending + (Exports - Imports)
Plugging in the values provided:
GDP = $2500 + $1000 + $1000 + ($1000 - $500)
GDP = $2500 + $1000 + $1000 + $500
GDP = $5000
Therefore, the GDP for this country is $5000.