Consumption expenditures $800 Investment expenditures 200
Government purchases 300
Exports 100
Imports 200
Wages 800
Refer to Table above. Consider the data above (in billions of dollars) for an economy:
Gross domestic product (in billions of dollars) for this economy equals
A) $2,200.
B) $1,600.
C) $1,400.
D) $1,200

GDP= $1,200

Explanation:

From the question above, we are given the following values

Consumption expenditure= $800

Investment expenditures= $200

Government purchases= $300

Imports= $100

Exports= $200

Wages= $800

Therefore the Gross Domestic Product(GDP) can be calculated as follows

GDP=Consumption+investment+government spending+(export-import)

= $800+$200+$300+($100-$200)

= $800+$200+$300+(-$100)

= $800+$200+$300-$100

= $1,200

Hence the Gross Domestic Product (in billions of dollars) for this economy is $1,200

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