In a given year, an economy has consumption of $8000, investment of $6000, government
purchases of $5500, exports of $3500, and imports of $2000, What is the GDP?
O a.19,500
O b.25,000
C. $14,000
O d. $21,000
The GDP is calculated by adding up consumption, investment, government purchases, and net exports (exports minus imports). So, $8000 (consumption) + $6000 (investment) + $5500 (government purchases) + ($3500 (exports) - $2000 (imports)) = $21,000. The correct answer is d. $21,000.
