Question

Using the information below, calculating the GDP by applying the expenditure approach formula.

 

Inventory investment         $50B.

Fixed investment               $120B.

Consumer durables            $420B.

Consumer nondurables      $275B.

Interest                            $140B.

Indirect business taxes       $45B.

Imports                          $80B.

Exports                          $40B.

Profits                            $320B.

Services                         $600B.

Government wages and salaries   $300B.

Government purchases of goods and services   $110B.