Given the following information about the economy of Pakistan, calculate Pakista

Question

Given the following information about the economy of Pakistan, calculate Pakistan's GDP. Note that the currency of Pakistan is the Rupee. Assume that the values are all current and no conversions need to be made.

The Government Purchases: 3.00 Trillions of Rupees

Individuals Consume: 11.10 Trillions of Rupees

Individuals Save: 5.37 Trillions of Rupees

Businesses Invest: 1.25 Trillions of Rupees

Foreigners spend: 0.50 Trillions of Rupees to purchase Pakistani firms.

Pakistan Imports: 2.57 Trillions of Rupees

Pakistan Exports: 1.39 Trillions of Rupees

_________ (answer) Number: in Trillions of Rupees

Explanation / Answer

GDP = C + I + G + NX

where C= Consumption

I = Investment

G = Government purchases

NX= Net exports.

Pakistan GDP = 11.10 + 1.25 + 3.00 + (1.39 - 2.57)

Pakistan GDP doesn't include saving and foreigners spending because GDP includes only final value of goods and services.

Pakistan's GDP = 15.35 - 1.18

Pakistan's GDP = 14.17 trillions of rupees.

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