question 7\ngross investment $100\nconsumption 240\nimports 20\ngovernment purchases 120\nexports 30\nrent…

question 7\ngross investment $100\nconsumption 240\nimports 20\ngovernment purchases 120\nexports 30\nrent 40\n(all figures in billions of dollars)\nbased on the data in the table above, gdp is\n$470\n$450\n$480\n$490

question 7\ngross investment $100\nconsumption 240\nimports 20\ngovernment purchases 120\nexports 30\nrent 40\n(all figures in billions of dollars)\nbased on the data in the table above, gdp is\n$470\n$450\n$480\n$490

Answer

Explanation:

Step1: Recall GDP formula

The formula for GDP using the expenditure - approach is $GDP = C+I + G+(X - M)$, where $C$ is consumption, $I$ is gross investment, $G$ is government purchases, $X$ is exports, and $M$ is imports. Rent is not included in the calculation of GDP using the expenditure - approach.

Step2: Substitute values

$C = 240$, $I=100$, $G = 120$, $X = 30$, $M = 20$. $GDP=240 + 100+120+(30 - 20)$

Step3: Calculate

First, calculate the value inside the parentheses: $30−20 = 10$. Then, add all the values: $240+100 + 120+10=470$.

Answer:

$470$ billion dollars, so the answer is $$470$.