The following are national income account data for a hypothetical
economy in billions of dollars: gross private domestic investment
320.00, imports 35.00, exports 22.00, persona consumption expenditures
2,460, and government purchases 470.00 What is GDP in this economy?

a. 3,250 billions
b. 3,263 billions
c. 3,237 billion
d. 3,290 billion
which is the answer?

skeeter1 --

The answer is (c) -- $3,237 billion.

The answer is derived by adding personal consumption expenditures
("C"), gross private domestic investment ("I"), government purchases
("G") and exports ("X"), and then substracting imports ("M").  The
equation for that computation is:

GDP = C + I + G + X - M

Using the numbers in your example, the computation is:

GDP = $2460 billion + $320 billion + $470 billion + $22 billion - $35
billion, so that:

GDP = $3237 billion.


Here is a link to a good summary of what GDP is and how it is
computed.  I commend it to your attention:
Cool Fire Technology: Economic Indicator: Gross Domestic Product
http://www.cftech.com/BrainBank/FINANCE/GDP.html


Search Strategy:

Google search using the following terms:
"gross domestic product" components
://www.google.com/search?sourceid=navclient&q=%22gross+domestic+product%22+components


I am confident that this it information you were seeking, and I trust
you will be satisfied with this prompt response.


markj-ga