The table below shows a section of the national accounts for a small country in 2018

Economics Nov 28, 2020

The table below shows a section of the national accounts for a small country in 2018. Answer the
question that follows using the information provided in the table.

Consumption expenditure
9 800
Government expenditure
3 500
Depreciation
500
Exports
2 200
Imports
1 900
Gross capital formation (investment)
2 500
Primary income payments
300
Primary income receipts
200

The value of Gross Domestic Product (GDP) is:
A 16 100
B 19 900
C 16 600
D 15 600

Expert Solution

GDP = C + I + G + X - M

C is consumption

I is investment

G is government spending

X is exports

M is imports

GDP = 9800 + 2500 + 3500 + 2200 - 1900

= 16100

Select Ac

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