The following data apply to a country in its domestic currency units:
|Consumer spending on goods and services||875,060||Government spending on goods and services||305,600|
|Business gross fixed investment||286,400||Government gross fixed investment||84,120|
|Change in inventories||−68,500||Capital consumption allowance||8,540|
|Transfer payments||9,300||Statistical discrepancy||−2,850|
Using the expenditures approach, the country’s GDP is closest to:
C is correct. Using the expenditures approach:
GDP = Consumer spending on goods and services + Business gross fixed investment + Change in inventories + Government spending on goods and services + Government gross fixed investment + Exports − Imports + Statistical discrepancy
|Consumer spending on goods and services||875,060|
|Business gross fixed investment||286,400|
|Change in inventories||(68,500)|
|Government spending on goods and services||305,600|
|Government gross fixed investment||84,120|
|= Gross domestic product (GDP)||1,448,650|
Hi, I know I am asking too much. But it will be great if someone can help. Can you plz tell me a trick (if any) to remember these formulas. I always skip one or the other thing.OR Any way through which i can polish my basics.
Thanks in advance!!