Given the Following Data for the Economy, Compute the Value

question 1

Multiple Choice

Given the following data for the economy, compute the value of GDP. $$\begin{array} { | l l | } \hline \text { Government purchases of goods and services } & 10 \\\text { Consumption Expenditures } & 70 \\\text { Exports } & 5 \\\text { Imports } & 12 \\\text { Change in inventories } & - 7 \\\text { Construction of new homes and apartments } & 15 \\\text { Sales of existing homes and apartments } & 22 \\\text { Government payments to retirees } & 17 \\\text { Business fixed investment } & 9 \\\hline\end{array}$$

• A) 56
• B) 83
• C) 90
• D) 141

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Definitions:

Compounded Semiannually

A method where interest payments are made on an investment or loan twice each year, leading to interest being earned on previously earned interest.

Annually Compounded

Pertaining to interest on investment or loans that is calculated once a year, adding to the sum each year.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, often used as an indicator of inflation.

Real Rate Of Return

The annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation.