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Computing GDP

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Introduction:
GDP is the most widely reported measure of the economy's output. It is the market value of the final goods and services produced in the economy within a particular time period.

Tasks:
Compute the GDP of Tanzania by using the following hypothetical information (all amounts are in trillions of dollars):

Consumption spending $150
Gross investment $55
Net investment $50
Government purchases $75
Government transfer payments $30
Imports $25
Exports $20

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Solution Summary

This is a simple and proper computation of the Gross National Product of Tanzania.

Solution Preview

The formula GDP computation is:

Y = C + I + (X - M)+ G

where

Y = GDP
C = Consumer Spending
I = Investment made by industry
X = Exports
M = Imports
G = Government Spending

Given the data for Tanzania, you can compute this based on the ...

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