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Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of $9,000, exports of $2,500, imports of $2,700, transfer payments of $750, capital depreciation of $800 and investment of $3,000. GDP equals: A. $24,450 B. $11,550 C. $15,300 D. $20,700 Solution Ans: C GDP=C+I+G+NX = 9000+3000+3500+2500-2700=15300 Using expenditure method GDP is sum of consumption expenditure, private investment, government expenditure, and net export..

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- Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of $9,000, exports of $2,500, imports of $2,700, transfer payments of $750, capital depreciation of $800 and investment of $3,000. GDP equals: A. $24,450 B. $11,550 C. $15,300 D. $20,700 Solution Ans: C GDP=C+I+G+NX = 9000+3000+3500+2500-2700=15300 Using expenditure method GDP is sum of consumption expenditure, private investment, government expenditure, and net export.

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