Assignment #5

Gross Domestic Product

Assume the economy in the United States has the following data:

Consumption = $12 trillion

Defense spending = $3 trillion

Government Purchases = $5 trillion

Net Exports = -$100 billion

Imports = $500 billion

Investment Spending = $2 trillion

Social Security Payments = $1.5 trillion

Household Income = $19 trillion

Exports = $400 billion

Rate of Unemployment = 7.8%

1. What is the GDP? Show your calculations.

2. Using only the data above, is the economy in a recession