Using the expenditure approach calculate GDP from the following data:
- personal consumption expenditures $1556
- net exports $132
- gross private domestic investment $162
- government purchases of goods and services $450
- personal income $1700
- corporate profits $600
The solution explains the concept of GDP and uses the GDP formula to calculate the GDP. The solution is very detailed. Any student can easily go through the explanation and understand what is in the response. It is ideal for students who want to learn the concepts so that they can apply to similar problems later on. The solution also presents two approaches of calculating GDP and arrives at the same answer using any of the approaches.