The Following Are National Income Account Data for a Hypothetical

question 163

Multiple Choice

The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($940) ; personal consumption expenditures ($4,920) ; imports ($170) ; exports ($133) ; gross investment ($640) .What is GDP in this economy?

• A)$6,463 billion
• B)$6,500 billion
• C)$6,537 billion
• D)$6,633 billion

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Definitions:

Annuity

An economic scheme that delivers fixed periodic earnings to recipients, usually serving as financial support for those retired.

Payments

Transactions where a good or service is exchanged for monetary compensation.

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specific interest rate.

Future Cash Flows

The anticipated receivable or payable cash amounts of a company, used for investment analysis and financial planning.