Suppose GDP is $16 trillion, with $10 trillion coming from consumption, $2 trillion coming from gross investment,

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Suppose GDP is $16 trillion, with $10 trillion coming from consumption,

$2 trillion coming from gross investment, $3.5 trillion coming from government expenditures, and $500 billion coming from net exports. Also suppose that across the whole economy, depreciation (consumption of fixed capital) totals $1 trillion. From these figures, we see that net domestic product equals:

a. $17.0 trillion

b. $16.0 trillion

c. $15.5 trillion

d. none of the above

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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