Country A has export sales of $ 2 0 billion, government purchases of $ 1 , 000 billion, business investment is $ 5 0 billion, imports are $ 4 0 billion, and consumption spending is $ 2 , 000 billion. What is the dollar value of GDP ?

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Answer 1

Textbook Question

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Chapter 19, Problem 1SCQ

Country A has export sales of $ 2 0 billion, government purchases of $ 1 , 000 billion, business investment is $ 5 0 billion, imports are $ 4 0 billion, and consumption spending is $ 2 , 000 billion. What is the dollar value of GDP?

Expert Solution & Answer

To determine

The Gross Domestic Product (GDP) of country A.

Answer to Problem 1SCQ

GDP= $3030 bn.

Explanation of Solution

Given Information:

Given values in the question are

C= $2,000 bn

I = $50 bn

G= $ 1,000 bn

X= $20 bn

M= $40 bn

Calculation:

So, substituting these values in the equation for GDP, we get,

GDP=$2000+$50+$1,000+($20−$40) =$2,000+$50+$1,000−$20 =$3,030 billion

Hence, The Gross Domestic Product (GDP) of country A is $3030 bn.

Economics Concept Introduction

Gross Domestic Product of a country: GDP of a country is the market value of all finished (final) goods and services produced in an economy during a particular year. It represents the economic well-being of a country as it is the aggregate income of that economy.

To define in terms of demand, GDP is the aggregate of all the expenditure by all economic units in an economy, namely, government purchases, private consumption expenditure, investment expenditure, expenditure on net exports(exports-imports), etc. The equation below defines GDP as the aggregate expenditure in the economy:

GDP = C + I + G + (X-M)

Where,

C = Consumption Expenditure

I= Business Investment Expenditure

G = Government Purchases

X = Exports

M= Imports

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ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = $20,000, P = $10, and P’ = $5, determine ƐQP, ƐQI, and ƐQP’.

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Answer 2

Textbook Question

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Chapter 19, Problem 1SCQ

Country A has export sales of $ 2 0 billion, government purchases of $ 1 , 000 billion, business investment is $ 5 0 billion, imports are $ 4 0 billion, and consumption spending is $ 2 , 000 billion. What is the dollar value of GDP?

Expert Solution & Answer

To determine

The Gross Domestic Product (GDP) of country A.

Answer to Problem 1SCQ

GDP= $3030 bn.

Explanation of Solution

Given Information:

Given values in the question are

C= $2,000 bn

I = $50 bn

G= $ 1,000 bn

X= $20 bn

M= $40 bn

Calculation:

So, substituting these values in the equation for GDP, we get,

GDP=$2000+$50+$1,000+($20−$40) =$2,000+$50+$1,000−$20 =$3,030 billion

Hence, The Gross Domestic Product (GDP) of country A is $3030 bn.

Economics Concept Introduction

Gross Domestic Product of a country: GDP of a country is the market value of all finished (final) goods and services produced in an economy during a particular year. It represents the economic well-being of a country as it is the aggregate income of that economy.

To define in terms of demand, GDP is the aggregate of all the expenditure by all economic units in an economy, namely, government purchases, private consumption expenditure, investment expenditure, expenditure on net exports(exports-imports), etc. The equation below defines GDP as the aggregate expenditure in the economy:

GDP = C + I + G + (X-M)

Where,

C = Consumption Expenditure

I= Business Investment Expenditure

G = Government Purchases

X = Exports

M= Imports

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

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Chapter 19, Problem 1SCQ

Country A has export sales of $ 2 0 billion, government purchases of $ 1 , 000 billion, business investment is $ 5 0 billion, imports are $ 4 0 billion, and consumption spending is $ 2 , 000 billion. What is the dollar value of GDP?

Expert Solution & Answer

To determine

The Gross Domestic Product (GDP) of country A.

Answer to Problem 1SCQ

GDP= $3030 bn.

Explanation of Solution

Given Information:

Given values in the question are

C= $2,000 bn

I = $50 bn

G= $ 1,000 bn

X= $20 bn

M= $40 bn

Calculation:

So, substituting these values in the equation for GDP, we get,

GDP=$2000+$50+$1,000+($20−$40) =$2,000+$50+$1,000−$20 =$3,030 billion

Hence, The Gross Domestic Product (GDP) of country A is $3030 bn.

Economics Concept Introduction

Gross Domestic Product of a country: GDP of a country is the market value of all finished (final) goods and services produced in an economy during a particular year. It represents the economic well-being of a country as it is the aggregate income of that economy.

To define in terms of demand, GDP is the aggregate of all the expenditure by all economic units in an economy, namely, government purchases, private consumption expenditure, investment expenditure, expenditure on net exports(exports-imports), etc. The equation below defines GDP as the aggregate expenditure in the economy:

GDP = C + I + G + (X-M)

Where,

C = Consumption Expenditure

I= Business Investment Expenditure

G = Government Purchases

X = Exports

M= Imports

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Answer 4

Textbook Question

100%

Chapter 19, Problem 1SCQ

Country A has export sales of $ 2 0 billion, government purchases of $ 1 , 000 billion, business investment is $ 5 0 billion, imports are $ 4 0 billion, and consumption spending is $ 2 , 000 billion. What is the dollar value of GDP?

Expert Solution & Answer

To determine

The Gross Domestic Product (GDP) of country A.

Answer to Problem 1SCQ

GDP= $3030 bn.

Explanation of Solution

Given Information:

Given values in the question are

C= $2,000 bn

I = $50 bn

G= $ 1,000 bn

X= $20 bn

M= $40 bn

Calculation:

So, substituting these values in the equation for GDP, we get,

GDP=$2000+$50+$1,000+($20−$40) =$2,000+$50+$1,000−$20 =$3,030 billion

Hence, The Gross Domestic Product (GDP) of country A is $3030 bn.

Economics Concept Introduction

Gross Domestic Product of a country: GDP of a country is the market value of all finished (final) goods and services produced in an economy during a particular year. It represents the economic well-being of a country as it is the aggregate income of that economy.

To define in terms of demand, GDP is the aggregate of all the expenditure by all economic units in an economy, namely, government purchases, private consumption expenditure, investment expenditure, expenditure on net exports(exports-imports), etc. The equation below defines GDP as the aggregate expenditure in the economy:

GDP = C + I + G + (X-M)

Where,

C = Consumption Expenditure

I= Business Investment Expenditure

G = Government Purchases

X = Exports

M= Imports

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

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Answer 6

Textbook Question

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Answer 7

Expert Solution & Answer

To determine

The Gross Domestic Product (GDP) of country A.

Answer to Problem 1SCQ

GDP= $3030 bn.

Explanation of Solution

Given Information:

Given values in the question are

C= $2,000 bn

I = $50 bn

G= $ 1,000 bn

X= $20 bn

M= $40 bn

Calculation:

So, substituting these values in the equation for GDP, we get,

GDP=$2000+$50+$1,000+($20−$40) =$2,000+$50+$1,000−$20 =$3,030 billion

Hence, The Gross Domestic Product (GDP) of country A is $3030 bn.

Economics Concept Introduction

Gross Domestic Product of a country: GDP of a country is the market value of all finished (final) goods and services produced in an economy during a particular year. It represents the economic well-being of a country as it is the aggregate income of that economy.

To define in terms of demand, GDP is the aggregate of all the expenditure by all economic units in an economy, namely, government purchases, private consumption expenditure, investment expenditure, expenditure on net exports(exports-imports), etc. The equation below defines GDP as the aggregate expenditure in the economy:

GDP = C + I + G + (X-M)

Where,

C = Consumption Expenditure

I= Business Investment Expenditure

G = Government Purchases

X = Exports

M= Imports

Answer 8

Expert Solution & Answer

To determine

The Gross Domestic Product (GDP) of country A.

Answer to Problem 1SCQ

GDP= $3030 bn.

Explanation of Solution

Given Information:

Given values in the question are

C= $2,000 bn

I = $50 bn

G= $ 1,000 bn

X= $20 bn

M= $40 bn

Calculation:

So, substituting these values in the equation for GDP, we get,

GDP=$2000+$50+$1,000+($20−$40) =$2,000+$50+$1,000−$20 =$3,030 billion

Hence, The Gross Domestic Product (GDP) of country A is $3030 bn.

Economics Concept Introduction

Gross Domestic Product of a country: GDP of a country is the market value of all finished (final) goods and services produced in an economy during a particular year. It represents the economic well-being of a country as it is the aggregate income of that economy.

To define in terms of demand, GDP is the aggregate of all the expenditure by all economic units in an economy, namely, government purchases, private consumption expenditure, investment expenditure, expenditure on net exports(exports-imports), etc. The equation below defines GDP as the aggregate expenditure in the economy:

GDP = C + I + G + (X-M)

Where,

C = Consumption Expenditure

I= Business Investment Expenditure

G = Government Purchases

X = Exports

M= Imports

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

The Gross Domestic Product (GDP) of country A.

Answer 12

Answer to Problem 1SCQ

GDP= $3030 bn.

Answer 13

Explanation of Solution

Given Information:

Given values in the question are

C= $2,000 bn

I = $50 bn

G= $ 1,000 bn

X= $20 bn

M= $40 bn

Calculation:

So, substituting these values in the equation for GDP, we get,

GDP=$2000+$50+$1,000+($20−$40) =$2,000+$50+$1,000−$20 =$3,030 billion

Hence, The Gross Domestic Product (GDP) of country A is $3030 bn.

Answer 14

Economics Concept Introduction

Gross Domestic Product of a country: GDP of a country is the market value of all finished (final) goods and services produced in an economy during a particular year. It represents the economic well-being of a country as it is the aggregate income of that economy.

To define in terms of demand, GDP is the aggregate of all the expenditure by all economic units in an economy, namely, government purchases, private consumption expenditure, investment expenditure, expenditure on net exports(exports-imports), etc. The equation below defines GDP as the aggregate expenditure in the economy:

GDP = C + I + G + (X-M)

Where,

C = Consumption Expenditure

I= Business Investment Expenditure

G = Government Purchases

X = Exports

M= Imports