Question
Suppose in the year 2018, people spent $200 on durable goods, $200 on non-durable goods, and $100 on services.During the same year, the government paid
Suppose in the year 2018, people spent $200 on durable goods, $200 on non-durable goods, and $100 on services.During the same year, the government paid $200 to soldiers and police officers, spent $100 building missiles and highways, spent $200 on welfare and unemployment benefits and $300 on social security payments.During this year the United States had imports totaling up to $500 while exporting $400 worth of goods and services.Finally, firms spent $200 on machines that will increase their productive capacity and they raised the amount of goods in their inventories from $400 at the beginning of the year to $500 at the end of the year.
Please use this information to calculate total GDP for 2018
a.$1,200
b.$1,300
c.$1,500
d.$1,000
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