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    Computing GDP

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    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.

    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 Preview

    The formula GDP computation is:

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


    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 ...

    Solution Summary

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