**4. Measuring GDP**The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2018, as published by the Bureau of Economic Analysis. All figures are in billions of dollars.*Fill in the missing cells in the table to calculate GDP using the expenditure approach.*| **Data** | **Billions of dollars** ||-----------------------------|-------------------------|| Consumption (C) | 13,948.5 || Investment (I) | 3,650.1 || Exports (X) | 2,531.3 || Imports (M) | 3,156.7 || Net Exports of Goods and Services | || Government Purchases (G) | 3,520.8 || Gross Domestic Product (GDP)| |**Explanation:**- **Consumption (C):** Represents the total value of all goods and services consumed.- **Investment (I):** Refers to the total spending on capital goods that will be used for future production.- **Exports (X):** The value of goods and services sold to other countries.- **Imports (M):** The value of goods and services purchased from other countries.- **Net Exports of Goods and Services:** Calculated as Exports minus Imports (Net Exports = X - M).- **Government Purchases (G):** Total government expenditures on goods and services.- **Gross Domestic Product (GDP):** The sum of Consumption, Investment, Government Purchases, and Net Exports (GDP = C + I + G + (X - M)).

GDP measures the market value of goods and services produced in an economy within a given period of time. Net exports = exports – imports = 2531.3 – 3156.7 = - $625.4 Expenditure approach GDP = C + I + G + NX = 13948.5 + 3650.1 + 3520.8 – 625.4 = $20494

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following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2018, as lished by the Bureau of Economic Analysis. All figures are in billions of dollars. in the missing cells in the table to calculate GDP using the expenditure approach. Data (Billions of dollars) onsumption (C) 13,948.5 vestment (I) 3,650.1 ports (X) 2,531.3 nports (M) 3,156.7 et Exports of Goods and Services overnment Purchases (G) 3,520.8 ross Domestic Product (GDP)

following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2018, as lished by the Bureau of Economic Analysis. All figures are in billions of dollars. in the missing cells in the table to calculate GDP using the expenditure approach. Data (Billions of dollars) onsumption (C) 13,948.5 vestment (I) 3,650.1 ports (X) 2,531.3 nports (M) 3,156.7 et Exports of Goods and Services overnment Purchases (G) 3,520.8 ross Domestic Product (GDP)

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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**4. Measuring GDP**

The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2018, as published by the Bureau of Economic Analysis. All figures are in billions of dollars.

*Fill in the missing cells in the table to calculate GDP using the expenditure approach.*

| **Data** | **Billions of dollars** |
|-----------------------------|-------------------------|
| Consumption (C) | 13,948.5 |
| Investment (I) | 3,650.1 |
| Exports (X) | 2,531.3 |
| Imports (M) | 3,156.7 |
| Net Exports of Goods and Services | |
| Government Purchases (G) | 3,520.8 |
| Gross Domestic Product (GDP)| |

**Explanation:**

- **Consumption (C):** Represents the total value of all goods and services consumed.
- **Investment (I):** Refers to the total spending on capital goods that will be used for future production.
- **Exports (X):** The value of goods and services sold to other countries.
- **Imports (M):** The value of goods and services purchased from other countries.
- **Net Exports of Goods and Services:** Calculated as Exports minus Imports (Net Exports = X - M).
- **Government Purchases (G):** Total government expenditures on goods and services.
- **Gross Domestic Product (GDP):** The sum of Consumption, Investment, Government Purchases, and Net Exports (GDP = C + I + G + (X - M)).

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