1. Would it be possible for an increase in taxation to decrease the gross domestic product measured inthe U.S.? Explain.

2. Using the expenditure approach, calculate GDP using the following data (please do not just put a total but show what was added).

Item	Amount in dollars (billions)
Total Consumption	8,000
Consumption of Durable Goods	1,600
Consumption of Non Durable Goods	2,800
Consumption of Services	3,200
Total Investment	3,500
Fixed Investment	1,000
Government purchases of Goods & Services	2,500
Government Transfer Payments	450
Exports	800
Imports	1,000
GDP Equals