4. Measuring GDP The following table shows data on consumption, investments, exp

Question

4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2011, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Consumption (C) Investment (I) Exports (x) Imports (M) Net Exports of Goods and Services Government Purchases (G) Gross Domestic Product (GDP) Data Billions of dollars) 10,279.0 1,854.9 2,094.2 2,662.3 3,059.8

Explanation / Answer

Solution-

GDP = Consumption + Investment + Government Purchases + Net exports (Exports - Imports)

Hence GDP,

       = 10,279.0 + 1854.9 + 3059.8 + (- 568.1)

       = $14,625.6

Therefore, GDP is $14,625.6

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